The geriatric care industry is experiencing rapid growth due to an aging population, with increased demand for specialized healthcare services. There are 5 structural forces that govern the competitive nature of every industry, as theorized by Michael Porter:

• Internal Rivalry: High due to numerous existing healthcare providers and new entrants offering innovative solutions.
• Supplier Power: Moderate as there are few specialized suppliers of geriatric medical equipment and medication.
• Buyer Power: High because patients and their families have numerous choices and are price-sensitive.
• Threat of New Entrants: Moderate, as new companies bring technological innovations and advanced care models.
• Threat of Substitutes: Low, as specialized geriatric care requires trained professionals and specific infrastructure.

Emergent trends include technological advancements in patient care and a shift towards home-based healthcare services. These trends result in both opportunities and risks:

• Adoption of Telehealth Services: Provides an opportunity to reach more patients and improve care continuity, but requires significant investment in technology and training.
• Integration of Advanced Medical Technologies: Enhances patient outcomes and operational efficiencies, yet poses financial risks due to high initial costs.
• Increased Regulatory Scrutiny: Ensures high standards of care but could increase compliance costs and operational complexity.

PEST analysis reveals that political factors such as healthcare policies and regulations play a significant role in shaping the industry. Economic trends indicate a growing demand for cost-effective care solutions. Social factors highlight an increasing preference for personalized care. Technological advancements offer both opportunities for innovation and challenges in terms of adoption and integration.

The organization has strong expertise in geriatric care but faces challenges with outdated technology and inefficient operations.

SWOT Analysis

Strengths include specialized knowledge in geriatric care and a committed workforce. Opportunities involve adopting new technologies and expanding home-based care services. Weaknesses are outdated technology and operational inefficiencies that hinder patient retention. Threats include increased competition and regulatory changes that may impact operations.

4 Actions Framework Analysis

The organization needs to Eliminate outdated processes and technology that slow down operations. It should Reduce the dependency on manual processes. Raise the level of patient care quality through personalized treatment plans. Create new revenue streams by introducing telehealth services and home-based care options.

Value Chain Analysis

Primary activities include inbound logistics (patient intake), operations (medical care), outbound logistics (patient discharge), marketing & sales (patient acquisition), and service (ongoing care). Support activities involve technology infrastructure, human resources, and procurement. Analyzing these activities reveals inefficiencies in patient intake and discharge processes, and opportunities to enhance service delivery through advanced medical technologies.

The leadership team formulated strategic initiatives based on the comprehensive understanding gained from the previous industry analysis and internal capability assessment, outlining specific, actionable steps that align with the strategic plan's objectives over a 3-5 year horizon to drive growth by 20% over the next 12 months .

• Technology Upgrade: Implement advanced healthcare technologies to improve operational efficiency and patient care. The strategic goal is to enhance patient outcomes and streamline processes. Value creation comes from improved patient satisfaction and reduced operational costs. This initiative requires investment in new technology, training, and IT infrastructure.
• Telehealth Services: Launch telehealth services to reach more patients and provide continuous care. The goal is to increase patient retention and expand market reach. Value creation is driven by increased patient engagement and higher revenue. This will require technological integration, marketing efforts, and training for healthcare providers.
• Operational Excellence Program: Develop and implement a program aimed at optimizing operational processes. The goal is to reduce inefficiencies and cut costs. Value creation comes from improved operational efficiencies and cost savings. This initiative will need process consultants, staff training, and investment in process management tools.
• Patient-Centric Care Model: Introduce a personalized care model to enhance patient satisfaction and retention. The goal is to differentiate the organization in a competitive market. Value creation is through improved patient loyalty and increased referrals. This initiative requires training, new care protocols, and patient engagement tools.
• Valuation Improvement Plan: Implement strategies to enhance overall valuation through patient retention and operational efficiency. The goal is to improve financial health and attractiveness to investors. Value creation comes from higher market valuation and better financial performance. This will require financial advisors, market research, and strategic planning resources.

Valuation Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.

• Patient Retention Rate: Measures the effectiveness of patient engagement strategies and care models.
• Operational Efficiency Index: Evaluates improvements in operational processes and cost reductions.
• Technology Adoption Rate: Monitors the successful implementation and utilization of new technologies.
• Telehealth Usage Rate: Tracks the adoption and usage levels of telehealth services.
• Valuation Metrics: Assesses changes in overall market valuation and financial performance.

These KPIs provide insights into the effectiveness of strategic initiatives, highlighting areas for improvement and ensuring alignment with organizational goals.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Stakeholder Management

Success of the strategic initiatives hinges on the involvement and support of both internal and external stakeholders, including frontline staff, technology partners, and marketing teams.

• Healthcare Providers: Essential for implementing new care models and telehealth services.
• IT Department: Responsible for technology upgrades and maintaining new systems.
• Marketing Team: Key in promoting new services and engaging with patients.
• Patients: Provide feedback and engage with new care models and services.
• Investors: Crucial for funding technology upgrades and strategic initiatives.
• Regulatory Bodies: Ensure compliance with healthcare regulations and standards.
• Operational Consultants: Assist in implementing operational excellence programs.
• Financial Advisors: Guide valuation improvement strategies and financial planning.

We've only identified the primary stakeholder groups above. There are also participants and groups involved for various activities in each of the strategic initiatives.

Valuation Deliverables

• Technology Upgrade Roadmap (PPT)
• Telehealth Implementation Plan (PPT)
• Operational Excellence Toolkit (PPT)
• Valuation Improvement Framework (PPT)
• Financial Impact Model (Excel)

The implementation team leveraged several established business frameworks to help with the analysis and implementation of this initiative, including the Resource-Based View (RBV) and the McKinsey 7S Framework. RBV is a strategic management tool that focuses on the internal resources of an organization to gain a competitive advantage. It was particularly useful in this context because it helped identify the key technological assets and capabilities that could be leveraged for operational efficiency. The team followed this process:

• Conducted an inventory of existing technological assets and capabilities to identify strengths and weaknesses.
• Assessed the strategic value of these assets in achieving operational efficiency and competitive advantage.
• Aligned technological upgrades with the organization's long-term strategic goals and operational needs.

The McKinsey 7S Framework was deployed to ensure alignment between the technological upgrades and the organization's overall strategy and structure. This framework examines 7 internal elements: Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills. It was useful for identifying misalignments and ensuring that the technological upgrades supported the broader organizational objectives. The team followed this process:

• Reviewed the current strategy and identified how the technological upgrades would support it.
• Analyzed the existing organizational structure to determine if it was conducive to implementing the new technologies.
• Evaluated the current systems, shared values, style, staff, and skills to ensure they were aligned with the new technological direction.

The implementation of these frameworks resulted in a comprehensive understanding of the organization's technological capabilities and the alignment of these capabilities with its strategic objectives. This led to improved operational efficiency, reduced costs, and enhanced patient care quality.

The implementation team utilized the Diffusion of Innovations (DOI) Theory and the Lean Startup Methodology to guide the deployment of telehealth services. DOI Theory explains how, why, and at what rate new ideas and technology spread through cultures. It was particularly useful in this context to understand how telehealth services could be adopted by both patients and healthcare providers. The team followed this process:

• Identified the key attributes of telehealth services that would influence adoption, such as relative advantage, compatibility, complexity, trialability, and observability.
• Developed communication strategies to highlight these attributes to potential users.
• Monitored the adoption process and gathered feedback to make necessary adjustments.

The Lean Startup Methodology was employed to ensure a rapid and iterative approach to developing and deploying telehealth services. This methodology focuses on creating a minimum viable product (MVP) and using validated learning to improve it. It was useful for quickly bringing telehealth services to market while minimizing risks. The team followed this process:

• Developed an MVP of the telehealth service to test its core functionalities.
• Conducted pilot tests with a small group of patients and healthcare providers to gather feedback.
• Used the feedback to make iterative improvements to the service before a full-scale rollout.

The implementation of these frameworks facilitated the successful launch of telehealth services, resulting in increased patient engagement, higher retention rates, and expanded market reach.

The implementation team leveraged the Six Sigma methodology and the Theory of Constraints (TOC) to drive the Operational Excellence Program. Six Sigma is a data-driven approach to improving quality by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. It was particularly useful for enhancing operational efficiency and reducing costs. The team followed this process:

• Defined the specific operational processes that needed improvement.
• Measured current process performance to establish a baseline.
• Analyzed data to identify root causes of inefficiencies.
• Improved processes by implementing solutions to eliminate root causes.
• Controlled the improved processes to ensure sustainability.

The Theory of Constraints (TOC) was used to identify and address the most significant limiting factor (constraint) that hindered the organization from achieving its goals. It was useful for focusing efforts on the most impactful areas. The team followed this process:

• Identified the primary constraint in the operational processes.
• Exploited the constraint by making the best use of its current capacity.
• Subordinated other processes to support the constraint.
• Elevated the constraint by increasing its capacity.
• Repeated the process to identify and address new constraints.

The implementation of these frameworks led to significant improvements in operational efficiency, reduced costs, and enhanced overall process performance.

The implementation team employed the Customer Journey Mapping and the SERVQUAL Model to develop the Patient-Centric Care Model. Customer Journey Mapping is a visual representation of the customer’s experience with a service or product. It was particularly useful for understanding the patient's experience and identifying pain points. The team followed this process:

• Mapped out the entire patient journey from initial contact to post-treatment follow-up.
• Identified key touchpoints where the patient interacts with the organization.
• Analyzed patient feedback to identify pain points and areas for improvement.

The SERVQUAL Model was used to measure service quality across 5 dimensions: tangibles, reliability, responsiveness, assurance, and empathy. It was useful for assessing the quality of patient care and identifying gaps. The team followed this process:

• Conducted surveys to measure patient perceptions across the 5 dimensions of service quality.
• Analyzed the survey data to identify gaps between patient expectations and actual service delivery.
• Developed action plans to address the identified gaps and improve service quality.

The implementation of these frameworks resulted in a more patient-centric care model, leading to higher patient satisfaction, improved retention rates, and increased referrals.

The implementation team utilized the Economic Value Added (EVA) and the McKinsey Value Framework to enhance the overall valuation of the organization. EVA is a measure of a company's financial performance based on the residual wealth calculated by deducting the cost of capital from its operating profit. It was particularly useful for understanding the true economic profit generated by the organization. The team followed this process:

• Calculated the net operating profit after taxes (NOPAT) for the organization.
• Determined the cost of capital and deducted it from NOPAT to calculate EVA.
• Identified areas where EVA could be improved by increasing NOPAT or reducing the cost of capital.

The McKinsey Value Framework was used to identify and prioritize value drivers that impact the organization's valuation. It was useful for developing strategies to enhance these value drivers. The team followed this process:

• Identified key value drivers such as revenue growth, operating margin, capital efficiency, and risk management.
• Developed strategies to enhance each value driver, such as increasing revenue through new services or improving operating margin through cost reductions.
• Implemented these strategies and monitored their impact on the overall valuation.

The implementation of these frameworks led to a comprehensive understanding of the factors impacting the organization's valuation, resulting in improved financial performance and a higher market valuation.