SWOT analysis is an examination of an organization’s internal strengths and weaknesses, its opportunities for growth and improvement, and the threats the external environment presents to its survival. Originally designed for use in other industries, it is gaining increased use in healthcare.
How to bring maximum benefit to your twice-yearly marketing update?
Strategic planning demands realistic and objective assessment. At least twice each year, use the SWOT analysis to discover key internal and external issues and refresh the strategies and tactics of your marketing plan. Understanding where you are today is fundamental to achieving your future goals.
The well-known SWOT analysis appears disarmingly simple, but avoid the temptation do it quickly or casually. Taking this valuable analysis for granted would be downright unfortunate.
Steps in SWOT Analysis
The primary aim of strategic planning is to bring an organization into balance with the external environment and to maintain that balance over time. Organizations accomplish this balance by evaluating new programs and services with the intent of maximizing organizational performance. SWOT analysis is a preliminary decision-making tool that sets the stage for this work
STRENGTHS:
List of your capabilities and resources that can be the basis of a distinct competitive advantage. Ask: What are the most important strengths? How can we best use them and capitalize on each strength? Strengths could include:
- A new and or innovative service
- Capabilities or cost advantages
- Extraordinary reputation
- Other aspects that add value
- Special expertise and/or experience
- Superior location or geographic advantage
WEAKNESSES:
What areas need improvement (or should be avoided)? Ask: What would remove or overcome this weakness? Weaknesses can sometimes be the absence of certain strengths, and in some cases, a weakness may be the reverse side of one of your strengths. Weaknesses might include:
- Absence of a marketing plan
- Damaged reputation
- Gaps in capabilities or service areas
- Lagging in technology
- Management or staff problems
- Own known vulnerability
- Poor location or geographic barriers
- Undifferentiated service lines
OPPORTUNITIES:
In addition to new or significant trends, what other external opportunities exist and how can we best exploit or benefit from each? Examples might include:
- A market vacated by a competitor
- Availability of new technology
- Changes in population profile or need
- Competitor vulnerabilities
- Lack of dominant competition
- The new market segment that offers improve profit
- New vertical, horizontal, or niche markets
THREATS:
Can include anything that stands in the way of your success. No practice is immune to threats, but too many people miss, ignore or minimize these threats, often at great cost. Ask: What can be done to mitigate each threat? Can a threat become an opportunity? Threats could include:
- A competitor has an innovative product or service
- A new competitor(s) in your home market
- Adverse changes in reimbursement or regulations
- Changing insurance plans and/or contracts for major area employers
- Competitors have superior access to channels of distribution
- Economic shifts
- Loss of key staff or associates
- New or increased competition
- Shifts in market demand or referral sources
Seven simple rules for successful SWOT analysis
1. Be Specific: Avoid gray areas, vague descriptions or fuzzy definitions.
2. Be Objective: Ask for input from a well-informed but objective third party; compare it with your own notes.
3. Be Realistic: Use a down-to-earth perspective, especially as you evaluate strengths and weaknesses. Be practical in judging both sections.
4. Apply Context: Distinguish between where the organization actually is today, and where it could be in the future.
5. Contrast and Compare: Analyze in relation to your competition i.e. better than or worse than your competition.
6. Short and Simple: Avoid needless complexity and over-analysis.
7. Update your marketing plan and goals: Once the key issues have been identified, define the action steps to achieve change.
SWOT analysis is a precursor to the strategic planning process. Ideally, SWOT analysis includes a comprehensive review of the healthcare literature, in-depth data analysis, and input from a panel of SWOT analysis experts. Findings from the analysis are sorted into four categories: strengths, weaknesses, opportunities, and threats. Force field analysis supplements SWOT analysis by identifying the forces driving the strengths, weaknesses, opportunities, and threats
If you’d like to know more about putting this high-value assessment tool to work in your plan, we would be pleased to provide a well-informed and objective sounding board for you. Reach me at +1(302) 613-1356, or connect with me here
]]>A business plan is a road map to the success of your practice. It shows you where you are starting, where you want your business to be in the future, and how you plan to get there.
When doctors begin a practice, a great first step is to create a medical practice business strategy.
A Medical Practice Marketing Strategy is a formal process. It helps to identify your mission, values, goals, projects, timing, barriers, opportunities, and strategies.
Here’s a look at the important points to include in your business plan and how to write them.
- Mission Statement: Why have you chosen to start your own practice? What are your personal and professional reasons for taking this step? What do you want to achieve?
- Values Statement: Values are a little more intangible at times, but still very important. Consider what’s important to your medical practice, and how you deliver care. The way you interact with patients and each other are all going to reflect the values you espouse.
- SWOT Analysis: Take the time to think through the strengths, weaknesses, opportunities, and threats that are specific to your practice in your location. Given your practice mission and values, in what areas do you excel? Where are you weaker? Based on this, what opportunities and threats to do you see to your practice in the next 5-10 years?
- Timeline: Map out your timeline from initial research to opening your doors. Know when each step has to happen for maximum efficiency. If your time to opening is either too short or too long, it will cost you more money.
- Budget: Research various costs in your area and create multiple scenarios for what you will spend to open your practice. Plan A will be what you have to spend to get your doors open. Plan B will include what you will purchase if you have any money remaining from Plan A. Plan C is for your ideal future plans, purchases, and upgrades as your practice becomes profitable.
- Market Research: Check out other providers as well as payers in your area. What is your patient demographic? What are the expected charges for services you plan to provide?
- Profitability Projections: Use a spreadsheet to create projections for expected expenses and revenue for at least your first 12 months.
- Ideal Patient Profile: Envision the type of patient you want to treat and create a patient avatar. How old is your patient? Where does your patient live? Where do they spend their days? What is their income? What type of services do they want?
- Services You Will Offer: What type of services do you plan to offer? Do they complement the needs of your ideal patient?
- Goals: What are the practice’s specific goals? Financial goals are important, but also think about things like staffing, marketing, IT needs, operations, etc? If this is a new practice, this is the time to think in terms of creating an ideal practice. If this is an established solo or group practice, then perhaps it is a revision of what has been set in the past.
Healthcare Marketing Today:
Healthcare marketing goes well beyond advertising and sales and is considered an essential business function where strategy is the driver of a data-driven road map impacting the future direction of healthcare.
• Builds awareness
• Enhances visibility and image
• Increases prestige
• Attracts medical staff and employees
• Serves as an informational resource
• Influences consumer decision making
• Offsets competitive marketing
• Builds patient volume
• Maintains existing volume
Should you do it yourself, or hire a professional?
In any medical practice, there are likely to be differences of opinion, and someone outside the organization with no personal stake in the outcome can often help to be a guide for the discussion. An experienced external facilitator or medical practice consultant can also bring to the table lessons learned from other medical practice business strategy planning sessions.
It is very easy to skip this process when starting a medical practice. However, without a medical practice business strategy, you also are likely to miss opportunities and make some expensive mistakes as you grow your practice.
If you are thinking about starting your own practice or like so many other business processes, marketing implementation is far more successful with a solid marketing plan with the support of a structured system. We have the experience to create a highly effective strategic marketing plan.
Reach me today at +1(302) 613-1356 ,or writing me @ support@wonderws.com
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