Best practice: It’s all about the strategic plan

But there is another aspect of truly great supply chain programs that is a clear differentiator from the normal. I believe it is an absolute requirement for anyone desiring to be a world class or best in class supply chain. They all have strategic plans.

Have you ever heard the phrase, "If you have no idea where you are going, how will you know when you get there?" Nothing could be more true of a supply chain operation without a strategic plan. Your strategic plan is both your guiding light and your anchor. It is so easy to become overly involved in the tactical, day-to-day operations and forget about the future. We need a concrete, written plan that goes beyond what we want to accomplish in the next week or month or year. Without one, your strategic accomplishments will be limited at best.

Developing a strategic plan is relatively easy. Developing a good strategic plan is a little more difficult. This is not an exercise for an hour of quiet time at your desk. A good strategic plan takes research, interaction with customers and executives, input from key staff members and lots of iterations.

Research is an important element of plan formation. Start with a thorough review of the hospital’s and, if appropriate, the system’s strategic plan. You should become familiar with what supply chain departments in your market area are pursuing. Then take your search for information and ideas national. Learn about current trends and what is being envisioned for the future. Don’t ignore your trusted trading partners. Their plans for the future may help you formulate yours.

The major stakeholders in your organization – C-suite, IT, key physicians, supply-intensive departments, nursing – have two roles in the plan development. They should be part of your research. What are their needs now and in the future? What are their expectations? They should also be sounding boards for early drafts of the plan. Their buy-in and cooperation will be needed to turn your final plan into reality.

There are many ways to format a strategic plan. Some of the elements I believe are important include:

• Your mission, vision, and values. While formulating these can sometimes feel like an unnecessary exercise, the time and energy used is generally well worth the effort. This is where the supply chain executive and his/her key team members come to some consensus on who they are (mission and values) and who they want to be (vision). It is a team-building exercise and the start of the visioning needed for a solid plan. One item of note: While the team should collaborate on the formation of these items, the supply chain executive must assure that his/her vision and values are at the core.

• A clear understanding of the current state. You need a defined starting point with which to build improvements and measure progress. For this you must recognize and articulate what is happening now. This is one place where you should consider bringing in consultants. It is difficult to be genuinely objective in reviewing your own operation. Good consultants will bring this objectivity and a more global view of what is possible. They can help in both the current state and ideas for the future.

• A SWOT (strengths, weaknesses, opportunities, and threats) analysis. Once you have done your homework it is time to list out what is working, where the holes are, what will propel you into the future and what constraints you may encounter.

• A definitive picture of where you want to be at some future point in time. Most strategic plans look out for about five years. Yours can be a little shorter or longer depending on the amount of change needed and the degree of difficulty of that change. The ultimate goal(s) should include the benefits expected and the resources needed.

• Key milestones with projected accomplishment dates. This is your way to track progress and assure that the plan continues to move forward in a timely manner.

Once your plan is complete there is one more step. You need to publicize it widely. Arrange for a presentation to the executive team and even the board. If you can, present it to the medical executive staff. Make sure you highlight how the changes will benefit the individual audience. Present an outline to the full management group and to your full department. Make sure everyone is aware that there is a plan, and keep them abreast of its progress.

If your priorities are getting through the day without a fire starting then you can skip this best practice. But if your goal is to be a great department, you can’t get there without one. Invest the time and develop a strategic plan. You will be on your way to world class.