Wednesday, April 25, 2012

Essay on Strategy

Strategy is the Key to Success

This paper, by referring to the concrete organizational case illustrated in the article, “All Terrain Vehicle” by Denise C. Guzzetta (1997), argues that strategy is the key driver of success and achievement within the modern organization. Guzzetta analyzes two Management Services Organizations (MSO) models of the Good Idea Company and the Comprehensive Physician Services Company as they relate to professional physician-hospital integration along with strategies for effective integration.

The Good Idea Company’s strategy (depicted in “All Terrain Vehicle”) is unique in that it offers individual approach to those professionals (physicians in this case) who need assistance both on the regular and one-time basis. While most hospitals (and virtually all other providers) lack the resources to develop their own guidelines from scratch, there is no shortage of independently developed medical health care programs provided by MOS. It has to be noted that the Good Idea Company provides treatment guidelines and disease management programs, which serve as blueprints for the provision of medical care.

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Strategies, clearly, have a number of advantages. In home building, for instance, they assure that all the building parts are exactly the right size and fit together perfectly, that nothing is left out, and that nothing is done to excess. The same is true in medicine, where the treatment guidelines and disease management strategies of organization’s development assure the proper timing of all required services while avoiding duplication and waste.

In theory, guidelines within the hospital can cut down on the ordering of tests, demands on nursing time, and misuse of medications. Guidelines and programs offered by the Good Idea Company can facilitate scheduling of the operating room, intensive care, and discharge planning, all on the individual basis provided only upon request. In practice, disease management can help providers identify medical problems in their earliest stages and prescribe the most cost-effective therapies.

Yet, the Comprehensive Physician Services Company is sometimes perceived as the better and more effective option as compared to the Good Idea Company. Guidelines and disease management developed by the Comprehensive Physician Services Company are potentially far more effective in eliminating inappropriate variations in medical practice than the ones offered by the Good Idea Company, which is largely limited to simple decisions about the need for surgery or a single medical service and the appropriate length of inpatient stay.

Of course, strategies designed by the Comprehensive Physician Services Company and its practices have their disadvantages. Services offered to a large-scale medical center do not meet the needs of every unit, and many physicians insist on customization.

Some physicians distrust organizational strategies and disease management programs developed by outsiders to the medical community, especially pharmaceutical companies, which are often perceived as pushing their products rather than selling treatments. At the same time, physicians recognize that strategies set the clear path of development and create the settings for the organization’s functioning.
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