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Mercy Hospital Strategic Plan

Section 1

1. Mercy Hospital Strategic Plan 2013-2015

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1.1 Introduction and Background

Mercy Hospital is a regional hospital, which plays a very critical role in the delivery of health care in Mercy town and surrounding communities. The hospital was constructed in 1960, to serve the population of the town that had had a low population by then. There were significant renovations and additions in 1992, laboratory upgrades in 1999, and the current relocation plan. The hospital has been playing an essential role in the health care services in the region.

The population of the town has grown tremendously in those five decades. This population growth has greatly attributed to the increased development activities in the town that led to people migrating into this town and improved health care services. For example, the infrastructure of Mercy town has been developed due to the road that connects the town with the largest cities of the country. Therefore, Mercy town has become a town where some of the population working in the city has been residing, hence increased pressure to the health facility and other social amenities (Clark & Krentz, 2006).

Moreover, there have been developmental activities of residential houses and business buildings near the hospital due to increased demand in the town. This has led to the conflict between the local communities and the hospital due to pollution and other externality brought about by the hospital due to the pressure to offer services to a larger number of people than it can serve with the current infrastructure (Clark & Krentz, 2006).

Therefore, Mercy hospital facility at the end of its lifecycle does not meet all facility standards of current health care, and there is no room for expansion due to limited space. The components of the physical infrastructure and medical equipment have deteriorated. Some are no longer operational and pose potential health and safety risks to patients and employees. Therefore it is unable to meet its primary objective of providing health care to society. It is with this fact that there is a need for the hospital to be relocated (Vermeulen, 1996).

The relocation process has come with various challenges. It is with these facts that the Department of Health Information Medical Records of Mercy Hospital has focused on a project management plan that will ensure the Strategic Plan for the Health Information Record Service from 2013-2015 is achieved.

1.2 Characteristics of the Projects

Projects are characterized by the following aspects:

  • Projects are ad-hoc in nature but have a clear, well-defined lifecycle.
  • They also have building blocks in the plan and accomplishment of organizational strategies.
  • In addition, projects enable the development of the latest and most enhanced products or services, as well as organizational processes.
  • Projects in an organization are responsible for providing a philosophy and plan for the management of change.
  • Typical projects entail overlapping functional and organizational boundaries.
  • Just like organization processes, projects entail classical management functions of planning, organizing, motivating, guiding, and controlling.
  • The primary results of any project are customer satisfaction, requirements within technical, cost, and plan constraints.
  • Projects are ended once they are successfully completed.

1.3 Strategic Context

1.3.1 Integration of Sub-Optimal Goals for Each Department

As noted by Campbell, Carpenter, and Sneiderman (1997), each department is supposed to come up with its strategic plan in order to align with the hospital's strategic direction in line with the relocation plan, improved service delivery, and improve the working environment. This ensures overall sustainable growth and development of Mercy hospital, which are underpinned by the Vision, Mission, and Core Values of the hospital. Vision, Mission, and Core Values of an organization help in achieving its objectives.

However, Campbell, Carpenter, and Sneiderman (1997) argue that, in order to achieve these objectives, each department is to have its strategic plan. Each department's strategic plan is integrated with the strategic plans of other departments to ensure optimal solutions to the expected objectives. In this case, the Health Information Department will need to work together with Human Resources to ensure that employees in Health Information are trained in accordance with the tasks ahead and skills needed. The Human Resource Department will also be required to look for new employees with skills needed in case they plan to hire people with certain skills that the current team does not possess (Chelliah & Douglas, 2008). Moreover, the Procurement department is rather important for the purchases of new equipment that may be required. Other departments, like nursing and doctor, as well as subordinate Staffs, will be helpful to give provision of the information needed and enable to come up with a system that will eliminate redundant data entry throughout the organization (Chelliah & Douglas, 2008).

1.3.2. Implications of Technology

It is also worth stressing that the project plan should ensure that the technology involved should focus on a long-term perspective and sound systems viewpoint. It is proven that projects play a key role. They create value for the customer and effective and efficient management of an organization (Campbell, Carpenter, & Sneiderman, 1997).

1.3.3. Stream of Projects

As the project is in progress, some of the ideas will not be implemented. Some of the reasons include limited resources, unacceptable development costs, and lack of strategic fit. To avoid all the above-mentioned, the management should ensure that evaluation techniques are made available. The evaluation provides a balance between cultural ambiance, the process of ideas, and the environment.

1.3.4 Strategic Relationship of Projects

The project plan scope should support the organization's mission. According to Campbell, Carpenter, and Sneiderman (1997), the strategic decision of the organization should reflect the ability to create services and products that accommodate future needs.

1.3.5 Project Selection Framework

According to Jha, Doolan, and Grandt (2008), a project selection process enhances the manner in which the choices in the strategic planning are implemented. A critical element of the evaluation approach should ensure that a project is integrated with the mission, vision, and objectives of an organization.

1.3.6. Project Management System

Projects are planned for and implemented by the use of a project management system. It can be divided into facilitative organizational, techniques and methodology, cultural ambiance, planning, and human systems.

1.4 Project Structures and Governance Diagram


1.5 Strategic Context Diagram


1.6. TQM Implementation in the Project

For the strategic context to be fully implemented, the Total Quality Management (TQM) tool will be applied. Goetsch and Davis (2006) emphasize the importance of the TQM in employee management. They note that managing employees in a less than optimal way awakes a negative attitude towards the work of an individual employee, who hinders his / her performance and work output. In the long run, this negativity may permeate the entire workforce, thereby lowering organizational performance. To eliminate the possibility of such a scenario, Goetsch and Davis (2006) suggest fostering excellent communication and setting of clear employee expectations. They also pointed out setting an affirming environment and cultivating trust and employee empowerment and involvement in decision making. Rahman (2002) also shows the importance and significance of leadership and the role played by the management if implementing the TQM. He states that Human Resource Management (HRM) is an integral part of the TQM. Therefore, the efficiency of the management determines the efficiency of the TQM. Hendricks and Singhal (2000) add that the individual characteristics of an organization, such as organizational culture, determine the success of implementation and the benefits enjoyed.

In a study of the use of the TQM by Small and Medium Enterprises (SME’s) in Australia, Weisner, McDonald, and Banham (2007) conclude that firms with smaller workforces are more conveniently placed at adopting change. This includes implementations of new management strategies such as TQM in the large with a large number of employees. They define small organizations as those with less than 100 employees, while medium enterprises are those with 200-100 employees. On the contrary, such small and medium-sized firms have limited resources to enable them fully adopt such changes and reap the benefits both in the long term and short term. Weisner et al (2007) also add that, due to limited resources; SME’s have difficulties in planning in the long term. Due to their moving focus as determined by short-term goals, SME managers have difficulties in employing and providing strategic HRM.

Total Quality Management Master Plan (1990), as well as Goetsch and Davis (2006), offer various TQM concepts. As guided by the nature of the business and industry, and for convenience, Mercy hospital shall adopt the following listed concepts:

• Leadership;
• Vision/plan statement;
• Employees’ participation;
• Supplier quality management;
• Customer focus; and
• Evaluation.

Zhnag (2000) and Goetsch and Davis (2006) have developed different implementation programs.

However, for simplicity, the company will adopt the Goetsch and Davis (2006) 20 steps program. The 20 steps are loosely divided into three phases:

• Preparation;
• Planning; and
• Execution.

1.6.1. Phase I: Preparation Step 1: Management Commitment

The management must implement the TQM. Huq (2005) and Mersha, Sriram, and Herom (2009) warn that the desire by the management to maintain the status quo is the greatest impediment in effecting change. Again, resources must be available to implement the program. If there is such a commitment, the implementation program follows as below. Step 2: Forming the Steering Committee

Members of the committee will comprise members of senior staff. The committee will be responsible for steering the whole implementation process from the initial stage and ensuring its application throughout the process (Campbell, Carpenter, & Sneiderman, 1997). Step 3: Team Building

The steering committee will be transformed into a team through team-building activities and training by a consultant. Step 4: TQM training for the Committee.

The management and the committee must lead from the front. Mersha et al (2009) says management’s participation in the TQM inspires employees and teams to be actively involved. To do this, the steering committee will undergo training on the essentials and applications of the TQM. The training may also involve visits to firms already employing the TQM and borrowing some successful strategies.

Duration: two-hour sessions three days a week for a month. Step 5: Create Vision and Plan Statement

According to Jha, Doolan, and Grandt (2008), a vision statement serves as a guiding mantra for an organization, which is a short but concise statement that shows the desired future state of the business. It also serves as the foundation of all business strategies and objectives. This will be conducted by the steering committee and approximately take one day. Step 6: Establishment of Objectives

The steering committee will draft the objectives and ensure that they are concise and time-framed. The objectives will be smaller versions of the vision statement. The key objectives are suggested below:

• To increase the level of customers’ satisfaction to 8/10 in 18 months;
• To increase employees’ satisfaction by 10% in the first one year;
• To increase the individual employee’s output by 7% within one year after TQM training.

Duration: approximately three weeks. Step 7: Communicating and Publicizing the TQM

It will entail communication with the employees, suppliers, and other stakeholders. While employees are naturally part of the TQM implementation, suppliers will be brought onboard. Zhang (2000) and Goetsch and Davis (2006) say that firms should consider and treat their suppliers as their own branches. Therefore, the ideals of the TQM shall also be imparted to the suppliers such as just-in-time deliveries.

It is a continuous process throughout. Step 8: Identification of Strengths and Weaknesses

The steering committee must be open-minded and objective in identifying the weaknesses and strengths of the organization. It will be important in guiding the application of the TQM. The process also highlights areas where the TQM is needed most. Step 9: Advocates of TQM

The management must identify factors and processes that will welcome and boost the efficiency of the TQM. Similarly, factors and processes that are expected to offer resistance to the TQM must be identified. The advocates must be enhanced and resistors eliminated or adjusted (Campbell, Carpenter, & Sneiderman, 1997). Step 10: Employees’ Satisfaction and Attitude

This entails an assessment of the prevailing levels of satisfaction in employees. It is best carried out by circulating forms for employees to be filled out. With the results, Mercy hospital will be able to measure change induced by the TQM.

With prior preparation of forms to be filled out, it takes a few hours and should be done annually. Step 11: Customers’ Satisfaction and Attitude

This entails an assessment of the prevailing levels of satisfaction in customers. For efficiency, the services will be outsourced from a consultancy firm. With the results, Mercy hospital will be able to measure change induced by the TQM. It normally takes two months in order to assess customers’ satisfaction and will be done annually thereafter.

1.7 Objectives and the Scope of the Project

1.7.1 Objectives of Strategic Plan

Objectives for this project will focus on implementing healthcare information technology that:

  1. Eliminates redundant data entry throughout the hospital;
  2. Is easy to use;
  3. Facilitates the data electronic capture at its source;
  4. Provides an open, flexible, adaptable, and reliable healthcare technology base for the future;
  5. Provides high levels of data security that will ensure that all information is well-preserved and cannot be accessed by any third party. Third-party such as, hackers or other people who may have an intention of intruding with the key information regarding the hospital;
  6. Ensure objectives are achieved within the defined budget and time parameters;
  7. Facilitates information sharing and coordination both externally and internally between different departments;
  8. Provides a Healthcare environment that will attract and retain quality healthcare professionals.

1.8 Scope of the Project

The project will introduce new healthcare technology, which includes:

  • The access to the speedy Internet will ensure easier access of data when sending and uploading;
  • Automated reporting software that will ensure easier access and saving of information.

The scope also includes:

  1. Scanners and printers;
  2. Computer hardware upgrade and replacement;
  3. Bringing in of new skilled staffs that will train other staffs in the hospital that may have fewer skills on handling and operating the advanced equipment and technology.


Campbell, J. R., Carpenter, P., & Sneiderman, C. (1997). Phase II evaluation of clinical coding schemes: completeness, taxonomy, mapping, definitions, and clarity. Jamia.

Clark, Cathy Sullivan, & Krentz, Susanna E. (2006). Avoiding the Pitfalls of Strategic Planning. Healthcare Financial Management; 60, 11; ABI/INFORM Complete, 63.

Chelliah, J., & Douglas, D. (2008).What Clients Really Want from Management Consultants: Evidence from Australia.

Goetsch, D., & Davis, S. (2006). Quality management: introduction to total quality management for production, processing, and services, Sydney: Prentice Hall, Health Care Managers. The Journal of American Academy of Business, Cambridge, 17(1).

Huq, Z. (2005) Managing change: a barrier to TQM implementation in service industries, Managing Service Quality Journal, 15(5), 452-469.

Hendricks, K., & Singhal, V. (2000). Firm characteristics, total quality management, and financial performance, Journal of Operations Management, 238(1), 1–17.

Jha A. K, Doolan, D., & Grandt, D. (2008). The use of health information technology in seven nations. Int J Med Inform. New York.

Mersha, T., Sriram, V., & Herron, L. (2009). The impact of TQM implementation in a human service agency, International Journal of Productivity and Quality ManagementIssue, 4 ( 1), 1-19.

Rahman, S. (2002). Leadership and HR Focus in TQM Research in Australia: An Assessment and Agenda, (Online). Retrieved from

Total Quality Management Master Plan (1990). An Implementation Strategy, GOAL/QPC Research Committee, Research Report No. 90-12-02, (Online). Retrieved from

Weisner, R., McDonald, J., & Banham, H. (2007). Australian small and medium sized enterprises (SMEs): A study of high performance management practices, Journal of Management & Organization, 13(1), 227–248.

Vermeulen, W. (1996). TQM in retail departmental grocery and clothing chain stores in South Africa. The TQM Journal, 8(6), 20-23.

Zhang, Z. (2000). Implementation of Total Quality Management: An Empirical Study of Chinese Manufacturing Firms (Online). Retrieved from

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