Strategy and Self Assessment Complete and Update a Strategic Plan - PDF document

Strategy and Self ‐ Assessment • Complete and Update a Strategic Plan • Conduct a vulnerabilities and gap assessment M ERGER , A FFILIATION , OR against identified strategic imperatives I NDEPENDENCE • Develop competitive intelligence – Process should be viewed as early “due Steven J Tringale Estes Park Institute diligence” process for potential partners February 10, 2015 – Line up your gap assessment against those of competitors/potential partners What Are Organizational Strategy and Self ‐ Assessment Goals/Requirements of a Partner • Form Ad Hoc Committee to Review Strategic • Communicate and Educate Results to key Collaboration Options internal constituencies – Representatives from board, executive – Board management and physician leadership – Senior Management Team • Pivoting off strategic plan develop list of key – Key Physician Leaders (outside of board and organizational goals for Collaboration senior management) • Organize criteria into key areas • 1 st Gate – Decision that it is time to explore a – Assess areas where there is redundancy & areas collaborative relationship that expand your current capabilities What Are Organizational What Are Organizational Goals/Requirements of a Partner Goals/Requirements of a Partner • Governance and Organizational Structure • Clinical Program – Example: Is retaining governance control of local – Service lines capabilities and capacity system is a criteria for partnership? – Potential to support/enhance your operation • Strategic Positioning of Potential Collaborator – Compatibility of referral and teaching relationships – Test against your strategic plans vision of the • Regulatory Issues market as you see it evolving – Does potential affiliation pose additional risk and a • Business Operation different standard for approval – Collaborator have valuable/unique relationship • Issue should include assessment of partner & potential with payer(s), employers, government configuration of collaboration 1

What are Organizational Goals/Requirements of Partner Next Steps – Key Decisions • Cultural Fit • Are Certain Responses Off The Table – Issue most often cited for reason for failure of a – “We will not entertain a full asset merger” collaboration or dissatisfaction with partner – Do we start with least disruptive and intrusive – Qualitative assessment that needs to factored models into the quantitative analysis to determine your – Is this a transitional step or end game preferred collaborator • Would you grant a potential partner right of first • Resist temptation to factor this issue in after selecting refusal for full asset merger? potential partner Next Steps – Key Decisions The Negotiation Process • Recommend a facilitated process that: • After Initial Discussion With All Potential – Develops “relative weighting” for criteria of Partners – Eliminate preferred collaborator – Those that do not optimize your strategic objectives – Use survey as tool for ad hoc committee – Those that will not consider your affiliation option of – Engage committee in discussion on results choice – Results increase and validate buy in from ad hoc – Those where there is a strong belief in mission committee and their representative and/or culture clash constituencies – Those that provide an unacceptable risk of – Gate 2: Identify preferred collaborator regulatory complications or denial The Negotiation Process Closing Observations • Keep focus on option of choice • Move decisively, control the agenda • Maximize future options by agreeing to least • Put clearly defined limits on process – time intrusive option that meets institutions line and confidentiality strategic requirements • Develop strong Communications Plan • Remain flexible and creative – Deal templates – Clarity is Essential are just that – templates/guides – Internal and External Messages Consistent • Be prepared to say no • Consider Break Up Fees • Always have a Plan B!!!! 2

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