
Introduction:
– King Faisal Specialist Hospital and Research Center has been the leading tertiary healthcare center in Saudi Arabia, and for years was the only academic medical center (AMC) capable of treating complex medical conditions. It has been supported directly by the government through a cash based budget, while most of the public hospitals are part of the ministry of health (MOH), and some either supported by the ministry of education (university hospitals), or army-based (national guard and military hospitals). Recently, it transformed from a public-funded AMC to a not-for-profit foundation.
– The competition from the public hospitals has been increased in the last few years as the MOH hospital are being transformed to provide advanced complex medical care. Thus, the market of the providing advanced healthcare has changed from monopolistic to oligopolistic.
-The strategic question is:
– How to position KFSHRC and improve the value proposition and maintain the leading position as a leading tertiary healthcare center in Saudi Arabia throughout the transformation journey.
-Ideas:
– Focus on the demand and look for blue ocean market (cutting edge technology, virtual healthcare)
– Offer value-based healthcare to MENA countries.
– Talent acquisition and change management
– enhance the focus on core specialties
– Leverage innovation and capitalize on strengths and the value
The thinking process should follow this:
1. The organisation’s external context. What are the important dimensions of the environment in which we must operate? How is it changing? What is in and out of our control?
Summed up: What features of the external context require which degree of response?
2. Stakeholders (or, in a focused sense, customers) Who are our stakeholders (and customers) today? What are their expectations? Is it clear who our end customers are, and how their needs are shaped through stakeholders? What will these needs be tomorrow? What is the gap between what they ‘need’ now and ‘need’ in the future? What are the implications of not meeting their demands?
Summed up: Where will we compete – which markets, customers, with which value offerings?
3. Organisational resources and capabilities What are our resources and capabilities, and how do these give us a defendable advantage relative to competitors or comparators?
Summed up: What strength of resources and capabilities creates relative uniqueness versus competitors or comparators?
4. Organisational aspirations and values Are the choices we make about stakeholders, reflecting through how we choose to use our resources, represented through our aspirations and values? Are the resources in our organisation – our people and our activities – ‘organisation ready’ to capitalise on the opportunities we see or to respond to the challenges we face?
Summed up: How motivated is the organisation to meet its strategic challenges?
5. Our value proposition This begins with a diagnosis of the current strategic challenges or opportunities to get an initial idea of the complexities faced. This diagnosis should reflect the organisational aspirations and values. It will prescribe a value offering, along with a guiding policy to summarise how resources and capabilities will be organised.
Summed up: What is the value proposition, given the scope of our aspirations and capabilities? Is it proximate (achievable with stretch) if needed?
Models to use
External contexts:
PESTLE, VRIO, porters five forces
Internal:
Strategic relevant Capabilities and Resources
Assess order qualifiers and winners
Evaluate current and future proposition value
Come up with strategic options and critique