MSTM- 6023
Strategic Planning & Policy Development

Unit 2: Strategic Planning- Case Study Analysis 1
Drucker, P., 2008: Case # 13- What are “Results” in the Hospital?

Table of Contents

Overview ……………………………….………………………...……….. 2

Problem Statement ……………………….……………………...………… 2

Alternatives ………………………………….………………...…………... 3

Pros and cons ……………………………….………………………………4

Course of Action ……………………………..……………………………. 8

References ………………………………………………………………... 12

Overview

Robert Armstrong, an ex-Navy sailor managed a successful family business for twenty years. During this time he also served as the chairman of the hospital board of directors. Healthcare had always been an interest if his. Armstrong had planned to become a physician before being drafted to the Navy while in college. After many years of business management he had begun to resent the time spent travelling and growing his business. He had secured what he described as an “over competent” team of managers within his family business and was ready for change. When the opportunity to become the hospitals administrator became available Armstrong accepted the challenge. However not being experienced in heath care management he was initially reluctant. Armstrong consulted with the hospital’s chief of medical services to inquire, “How do I measure performance?” Familiar with the definition of good performance within corporate business, financial gain and profit, Armstrong struggled with how to define good performance within Health Care. The chief offered no suggestion but, respected the fact that he asked that question and expected that he would seek out the answer to it. Because Armstrong knew the facility & was well respected the chief felt Armstrong was the best person for the