Mayo Clinic

10 October 2016

Strategic planning and evaluation is extremely complex for every organization. The Mayo Clinic is a not-for-profit medical organization that services three metropolitan areas: Scottsdale/Phoenix Arizona, Jacksonville Florida and Rochester Minnesota. It’s known for specialization in hard-to-treat diseases, and also known for their innovative and effective treatments for diseases that have gone undiagnosed or under-treated in the same patients with other doctors. Health care is the single most important and essential service that touches the lives of everyone worldwide today.

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The competition is fierce, and that is why the Mayo Clinic’s founders and co-founders have integrated strategic objectives that will shape and guide the direction of their future as they know this is crucial to the productivity and the longevity of their organization. Dr. William Worrall Mayo (a pioneering physician) established the very first Mayo Clinic in Rochester, Minnesota in 1863. Dr. Mayo had a zeal for medicine and considered practicing medicine to fall under the guidelines of what he felt to be a family tradition. In 1883 is son Doctor William James Mayo joined him and in 1888 is other son Doctor Charles Horace Mayo followed.

Through watching their father practice medicine for years, is what too gave them a zeal for medicine and venture out and follow into his footsteps and practice medicine. It was in 1883 that a tornado swept through Rochester leaving in its wake, both fatalities and injuries. This unfortunate experience is what inspired Mother Alfred Moes, a nun, of the “Sisters of Saint Francis” teaching order, to request Dr. Mayo and sons alongside them, to build the first general hospital in Southeastern Minnesota. This was the world’s first private integrated group practice. “The 27-bed Saint Mary’s Hospital opened in 1889 as a result of this partnership. (Medical Foundation of Education and Research copyright 2001-2011). http://www. mayoclinic. org/careerawareness/mi-history. html It was in 1919, “that the Mayo brothers dissolved their partnership and turned the clinic’s name and assets, including the bulk of their life savings, to a private, not-for-profit, charitable organization now known as Mayo Foundation. ” (Medical Foundation of Education and Research copyright 2001-2011). Dr. William W. Mayo felt deeply that they should give back to those individuals that gave to them, that started the organization; and that could only be accomplished through medical education.

From this point on, the Mayo’s, their associates and all other potential Mayo Clinic physicians; could not receive a salary or profit personally from any proceeds established from the practice. Any income gained beyond this point from operating expenses, must be contributed to education, patient care and/or research. A board of governors and a committee system was established by the brothers to “present effective oversight of many aspects of Mayo life, thereby reinforcing the cooperative spirit of the founders. (Medical Foundation of Education and Research copyright 2001-2011). http://www. mayoclinic. rg/careerawareness/mi-history. html It was in the late 1980’s that the Mayo Clinic took the initial step to expand the organization beyond the state of Minnesota. In 1986 a clinic was established and launched in Jacksonville, Florida and again in 1987 in Scottsdale, Arizona. It was not until 1998 the Mayo Clinic reached their milestone by opening the Mayo Clinic Hospital located in Phoenix, Arizona. This two hundred bed facility was designed to incorporate technology into all aspects of patient care and experiences which required extensive and costly investments of information technology systems.

The organization realized that “Technology was no longer a thing of the past that was once referred to as a “back of the office support enabler,” (Medical Foundation of Education and Research copyright 2001-2011). and that they had to strategically devise a plan to secure the future of the organization. http://www. mayoclinic. org/careerawareness/mi-history. html As the organization’s strategic appetite broaden for technology, their initiative to broaden their strategic direction did also because their completion deadline in late 2000 was fast approaching.

Several Phoenix metropolitan area Mayo clinics were either consolidating or closing their practices. Senior leaders were very disturbed by this because this marked a change of the organizations strategic direction from the first 10 years of operations prior to the opening of the Mayo Clinic Hospital. The Chief Information Officer (CIO) partnered up with the physician chair of the IT oversight committee and conducted a situational analysis of the organizations components and map out a five year diagram of all the related human factors, physical factors, social factors, and economic factors that has come into lay as they attempted to fulfill the organizational goals and strategies; and modify them as they saw fit. The situational analysis consisted of evaluating the organizations management teams existing strategies, guidelines and procedures to ensure authentic comprehension of the organization’s objectives and that they are or were implemented appropriately. This analysis helped the organization to identify and eliminate weak points within the preceding system. Together the CIO and the physician chair of the IT oversight committee developed a plan parallel to that of the division’s information system.

Kranmer, Frey, Kirby, Lenko and Vrabel (2005) state that “The objectives of this team were to create a similar strategic roadmap that would not only create a technology vision and direction for the Arizona operations; it would clearly illustrate the importance of technology in supporting the broader organizational strategic plan. ” Edell, Curtright and Stolp-Smith (2000) stated that “Managing and measuring performance become exceedingly complex as healthcare institutions evolve into integrated health systems comprised of hospitals, outpatient clinics and surgery centers, nursing homes, and home health services.

They further state that, “Leaders of integrated health systems need to develop a methodology and system that align organizational strategies with performance measurement and management. To meet this end, multiple healthcare organizations embrace the performance-indicators reporting system known as a “balanced scorecard” or a “dashboard report. ” This discrete set of macro level indicators gives senior management a fast but comprehensive glimpse of the organization’s performance in meeting its quality, operational and financial goals.

The leadership of outpatient operations for Mayo Clinic in Rochester, Minnesota, built on this concept by creating a performance management and measurement system that monitors and reports how well the organization achieves its performance goals. ” The “scorecard” concept is how the Mayo Clinic in Rochester, Minnesota leadership management team monitored and reported how well the organization completed their performance goals. The Mayo Clinic’s vision, primary value, core principles, and day-to-day operations key performance indicators were monitored on a weekly, monthly or quarterly basis.

January 2001 the leadership team found themselves in a crisis because the capital investment of the proceeding three years was focused on the hospital opening and the remediation of Y2K concerns. It was determined that many of (IT)’s customers had forgone using their more strategic information system in deference to the technological and organizational imperatives of the time. This caused for a demand for new systems and exceeds the available capital budget by more than 300 percent.

Edell, Curtright and Stolp-Smith (2000) state that “Healthcare systems face strong pressures to improve clinical quality, enhance service, expand access, and reduce costs. Competitive pressures in the marketplace require healthcare systems to measure, monitor, and report system performance to maintain and expand a market base. Thus, those healthcare systems that are capable of dearly articulating and demonstrating the value of services provided enjoy a competitive advantage. They further state “As healthcare institutions evolve into integrated health systems comprising hospitals, outpatient clinics and surgery centers, nursing homes, and home health services, the task of measuring performance increases in complexity. Leaders of these institutions need to develop a methodology and system that align organizational strategies and core principles with performance measurement and management indicators. ” “In the true business management sense, strategy is distinguished by several key dimensions. (Moseley III, 2009). According to Moseley III (2009), “it may be easier to understand the concept of “strategic” planning by contrasting it with two other forms of planning – “operational” and” tactical. ” As these operations combine, they will “merge into a seamless continuum of forward-looking activity intended to ensure the survival and growth of the organization (Moseley III, 2009). At this point, the key dimensions of the organizational strategy will become directly linked to the strategic mindset of the organization.

It is my belief that key dimensions of the organization are relevant to having a strategic mindset because it is ultimately planned to over exceed the organizational goals which requires engaging and performing activities different of that of the competition. In order for your organization to stand out from the competition, communication must be persuasive and artistic. Organizational goals are set to “do something that is not being done at that very instance. ” (Moseley III, 2009, p. 3). The strategic and planning processes derived by this rganization have transitioned from being irregular reactive exercises to becoming planned, judicious and practical components of the overall IT management plan. A major benefit derived from this process is the ability to demonstrate the strategic alignment of IT initiatives and projections. Plans are ineffectual if they are not carried out accordingly. In conclusion, the Mayo Clinic one of the most accredited quality standard organizations known today. They have provided quality health care for more than six million people since it was founded in 1883.

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