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Strategic Leadership in healthcare


StrategicLeadership in healthcare

StrategicLeadership in healthcare

Accordingto Slack(2015), a strategyrefers to the directions in which an organization follows so as tomaintain its existence and maximize efficiency. For a business tothrive, there must be a leadership that fosters integration and unityamong its employees. Healthcare is one of the largest industries notonly in the U.S. but also in the whole world and its impact if feltby every individual in all the nations. Numerous efforts have beenput in place to improve the effectiveness of care delivery. Healthcare organizations must recognize the importance of strategicleadership and align their visions and missions to those of thestakeholders and foster a culture of inclusiveness in order toachieve efficiency and effectiveness.

Importanceof strategic leadership and methods to a health care organization

Thecore responsibility of a leader is to develop strategies to carry outthe goals of the company through identifying them. In most cases,strategic leadership dominates in the top levels of an organization.Leaders in the senior management are responsible for shaping thestrategic predisposition and vision of the firm within the range ofglobal strategic environment (Budak,&amp Kar, 2014).The functionality of health care sectors operates in a complex systemin both domestic and international levels and managing the situationin the global context makes health care delivery unreliable.

Healthcaresector is one of the leading industries around the globe andencounters much harder challenges. Factors such as technological,legal and political changes associated with health care industrycontribute to a rapid influence on health care providers, and in suchinstances, the health systems are transformed completely. As such,leadership is a necessary requirement in order to be able towithstand the aggressive, complex, and consistent changes in thehealth care sector. The health care organizations, being acomplicated system, require leaders who can understand the nature ofthe external environment, can establish effective strategies that candeal with the organizational changes and can manage the workflowwithin the institution efficiently (Budak,&amp Kar, 2014).

Theone important aspect of the strategic leadership in health care isthat it assists in developing and administering strategic plans(Budak,&amp Kar, 2014).This helps the institution by enabling professionals to make moreeffective and informed decisions which can help determiningorganization`s objectives and goals and to predict future prospectsbetter. Secondly, it helps the management to lead and administerthrough facilitating change. This assists the leaders to suggest theneeds of innovations and changes which are some of the commonmanagement tools applied in health care. And lastly, the managementcan champion the core values for a healthy organizational culture toachieve successful health care system (Budak,&amp Kar, 2014).Leaders can effectively navigate through the organizational issue ina manner to deliver quality health care services while sustainingharmonious work environment.

Methodsleaders use to align the mission, vision, and goals of individualstakeholders to the mission, vision, and objectives of theorganization

Establishinga clear and compelling vision, mission, and value statements is aglue that sticks an organization together. This is an important partof building a strategic foundation. The vision, values, and missionstatements may be subjected to amendments however, the intents mustremain unaffected. This gives a full clarity when making crucialbusiness decisions that may impact the future prospects (Rick, 2013).For leaders to align the organization`s mission, vision, and valuesto the stakeholders, they need first to create value through improvedoperations. To attain the company`s goals, managers need to masterthe overall operational processes. This tends to focus on enticing abroad base of customers on the grounds of offering better qualityservices at affordable costs. Another element could be throughbuilding customer intimacy by identifying what their needs and wantsare. When organizations implement this strategy, they can gain asuperior value by adapting its products and services to align withthe varying needs of the targeted customers. This has the potentialof meeting distinct customer needs through establishing an intimateknowledge of the different clients.

Effectivecommunication strategies a leader may choose to employ whencommunicating strategic vision of the organization to keystakeholders

Inmost cases, when organizations are communicating strategy, they arebasically communicating the need for change. The importance ofcommunication strategy is to align the scope and extent of change andthe methods of implementation with the values and principles asdefined in the stipulated policies. The primary goal of an effectivecommunication is to sustain the daily operations with increasedefficiency. Open and consistent communication is an essential elementfor successfully conveying strategic visions (Mayfield,Mayfield, &amp Sharbrough, 2015).People need information concerning the benefits and the outcomes ofchange to be able to quickly adapt and support the operational andtransformation process. As such, leaders of change programs mustestablish a strategy that incorporates the communications needs ofthe major stakeholders, resources, and networks required to reachaudiences as well as the activities that support an understanding ofgoals and benefits of the activities performed and transformationinitiative.

Whyleaders must align the organizational culture with the internal andexternal environment

Organizationalculture alignment is an important aspect for leaders in health careto contemplate. Most companies are struggling with thetransformations in the internal and external environment due tounsettling changes. Culture alignment is a secret ingredient and iscrucial for many organizations. This is attributed to the fact thatit tends to increase business performance results today and in thenear future (Rick, 2013). In order to map the organizational culturewith the internal and external environment, leaders must create aspecific strategy. In following corporate values to achieveprofessional excellence, leaders can introduce hierarchy culture tohelp the organization to drive normalization, planning, and strengthneeded to create values for money offering (O`Reilly&amp Tushman, 2013).Secondly, if the health care institution is focused on influencingcustomer relationship, they must emphasize on a culture that iscategorized by achievement and customer orientation. The externalenvironment of any business entity is ever changing and to remainrelevant, O`Reilly &amp Tushman (2013) suggested that anorganization should establish autonomous subunits within the firm,each having a specific alignment of people, processes, and cultures.An organization should also develop features that allow individualsto make their own decision on what to do a particular time (O’Reilly&amp Tushman, 2013). In doing so, the individuals will be able toappreciate the freedom and develop a sense of belonging to theorganization that would foster a culture of unity and understanding.There should be a set of processes and systems that permitindividuals to make their own judgment about how to spend their timewhen there are conflicting demands for alignment and adaptability(O’Reilly &amp Tushman, 2013).

Waysin which an organization can use financial forecasts to guideorganizational leadership

Withthe complexity of health care organizations and the dynamicenvironment in which they operate, it is not easy to possess therequisite knowledge base, intellect, and insight to warrant theinstitution success thus, it is essential to monitor a time-centeredand ultimate financial planning standard. To deliver high-value careand payment system while reflecting on the financial estimates, theorganization is required to first establish boundaries of financialperformance (Greasing, 2014). Secondly, the management needs tobalance sources and uses of capital. Thirdly, the team needs toestimate impending financial course. An evaluation of howfluctuations on vital expectations will impact the financial positionof a firm in also a necessary step that should be taken.

Robustforecasts are essential in developing an accurate financial stancesuch as formulating goals and establishing performance objectives tosustain the institution within its limits of control (Greasing,2014). This balance offers financial support for the organization`sstrategic path. Reliable and disciplined financial planning system iscrucial to meet the diverse individual`s health care needs. Customarycapital and financial planning remain relevant in today`sever-changing business environment however, hospitals and healthcare providers need to be more focused on strategy (Greasing, 2014).Leaders must, therefore, emphasize on the possible solutionsdeveloped including facilities planning, service line streamlining,information technology edges and cost management programs.


Thestrategic leadership concept is an essential element in themanagement of healthcare institutions due to the increased need forthe improvement of quality and efficiency in care delivery. It isessential for an organization to have effective communicationstrategies to encourage smooth operations. Leaders should communicatethe organization`s goals and vision so that individuals can alignthemselves with the culture and know what they are supposed to do atany given time. The implementation of the effective communicationstrategies will significantly improve the performance and efficiencyin the delivery of care.


Budak,F., &amp Kar, A. (2014). THE IMPORTANCE OF STRATEGIC LEADERSHIP INHEALTHCARE MANAGEMENT. IIBInternational Refereed Academic Social Sciences Journal,5(15),155.

Greising,C. H. (2014, October 13). How Hospitals Should Approach FinancialPlanning in Changing Times. Retrieved November 19, 2016, fromhttp://www.trusteemag.com/articles/772-how-hospitals-should-approach-financial-planning-in-changing-times

Mayfield,J., Mayfield, M., &amp Sharbrough, W. C. (2015). Strategic Visionand Values in Top Leaders’ Communications Motivating Language at aHigher Level. InternationalJournal of Business Communication,52(1),97-121.

O`Reilly,C. A., &amp Tushman, M. L. (2013). Organizational ambidexterity:Past, present, and future. TheAcademy of Management Perspectives,27(4),324-338.

Rick,T. (2013, April 24). The importance of organizational alignment.Retrieved November 19, 2016, fromhttps://www.torbenrick.eu/blog/strategy/the-importance-of-organizational-alignment/

Slack,N. (2015). Operationsstrategy.John Wiley &amp Sons, Ltd.