Strategic planning concepts and implementation

Strategic Plan

Implementation of the Plan

Over the last several years, health insurance companies have been facing increased amounts of scrutiny surrounding their business practices. Part of the reason for this, is because a number of different carriers are trying to maximize their profits, while maintaining a balance in: addressing various market and regulatory issues. At which point, many of these challenges can cause the insurance company to engage in practices that could affect their short-term profits. In the case of Aetna, they have been facing similar kinds of challenges, as the company has been disciplined for overlooking different regulations. A good example of this can be seen by looking no further than, the recent suspension for new enrollments in Medicare Part D, by the Centers for Medicare and Medicaid Services. ("Aetna Expects CMS Sanctions on Medicare," 2010) as the company, has engaged in practices that were against various policies and procedures when signing up seniors for the program. This is important, because it shows how Aetna must utilize a strategic plan that will tackle the underlying challenges surrounding: regulatory issues and providing the best services possible.

Objectives

To effectively implement any kind strategy requires that you examine a number of different factors impacting the industry to include: the pressure to cut costs, an aging population, consolidations and changing government regulations. As a result, the strategy will address a host of objectives to include: identifying procedures for improving compliance / monitoring and how to change the culture of the organization. ("Addressing Regulatory Compliance in Health Care," 2006)

Functional Tactics

The functional tactics are when the management must identify how the different objectives can be reached. Where, they will conduct a survey of: the current policies, procedures and the overall work environment. At which point, executives would determine how, they are ignoring various regulatory guidelines. ("Addressing Regulatory Compliance in Health Care," 2006)

Action Items

Once you have identified the different areas that need improvement. You must then examine what specific steps, can be taken to address the underlying problem. This is important, because during this part of the process you are designing mechanisms and procedures, to prevent the situation from spiraling out of control. ("Addressing Regulatory Compliance in Health Care," 2006)

Milestones and a Deadline

The different milestones and deadlines will give the staff a sense of urgency as well as satisfaction. This is because the deadlines, will serve as a way of forcing employees to meet the different objectives (while following the procedures). At the same time, the milestones can serve as way of helping to improve moral, which will motivate and allow everyone to feel good about their accomplishments. ("Addressing Regulatory Compliance in Health Care," 2006)

Tasks and Task Ownership

In this part of the strategy, everyone must understand their roles and how their actions will have an impact upon the company. At the same time, some type of accountability must be in place, to ensure that everyone is held responsible for the various tasks they are assigned. This is important, because it plays a vital role in helping to support: the different policies and procedures of the strategic plan. ("Addressing Regulatory Compliance in Health Care," 2006)

Resource allocation

Resource allocation is when you are determining what personnel will most effectively meet the Aetna's goals. This is accomplished by strategically placing key personnel in select areas, to monitor what is taking place. You would then, evaluate if the placement of key staff in these areas would improve the profit margins, while maintaining various compliance standards. ("Addressing Regulatory Compliance in Health Care," 2006)

Any required organizational change management strategies that would enhance successful implementation

To advance the implementation of this strategy, two different management principals must be embraced to include: the process orientated and people centered approaches. The process orientated approach is when you are examining an organization's procedures for: delivering the final product and services to customers. The people centered approach is when you looking at: how the attitudes, ideas and behavior of the staff will have an impact upon the company. These two elements are important, because they will help to improve the strategy by: addressing how the current policies and the action of the staff have created compliance issues. ("Types of Organizational Change," 2011)

Key success factors, budget, and forecasted financials, including a break-even chart

The success factors for the strategy will depend upon meeting certain goals to include: ensuring that everyone is following different procedures, examining the impact on the company's profit margins and analyzing how productivity can be improved (while maintaining the new compliance policy). To implement this kind of strategy, means that the budget will have to take into account increased amounts of time. This more than likely would cost in the range of: $2 million to $5 million dollars. Given the fact that the company is earning a net income of $1.72 billion a year, means that this strategy will not be a large expense. ("Aetna," 2011) as a result, the break event point can be covered within one to two days of the total net income for Aetna. Where, the company is earning approximately $4.7 million per day in net income. The below chart illustrates the average daily income and the maximum costs for this program.