MTMpearls
Strategic planning to ensure future practice success Randy P. McDonough
A
s the end of 2012 approached, I had two interesting conversations that helped me focus on my practice and what I ultimately want to achieve. The first was with a colleague who was starting an independent practice in a physician clinic and asked about my policy and procedure manual, as he needed to create one to be compliant with his pharmacy contracts. The second was with a friend of mine who asked me what my 5-year plan was for my practice and business. In both situations, I had a document that I could share—a policy and procedures manual and a strategic plan, respectively. The policies and procedures manual actually began as a past strategic plan when I first became a co-owner
■ Pharmacies need a strategic plan to ensure future success. ■ Strategic plans should be frequently reviewed and updated. and we expanded into clinical services, compounding, and durable medical equipment. We also recently updated our strategic plan when we opened a new pharmacy in a neighboring town and started a nursing home practice. Strategic planning is an important process that all pharmacy managers and owners need to perform periodically, especially given the changes in health care and, in particular, pharmacy. As I was updating our own strategic plan, I came across an article on the planning process of independent community pharmacy owners and managers.1
Key points ■ A random sample of 1,250 independent community pharmacy pharmacies received a survey instrument with the following three sections: • Characteristics about the pharmacy and owner/manager demographics www.pharmacist.com
• Respondent’s attitude and perceptions of strategic planning and whether they used strategic planning for their practice • If they used strategic planning, how frequently the plan was updated and the steps used ■ The following seven steps of strategic planning were identified in this study: • Development of mission statement and goals and objectives • Identification of strengths and weaknesses • Identification of potential threats and opportunities • Formulation and selection of strategies • Review of structure and systems • Strategy implementation • Periodic review and evaluation of chosen strategies ■ Of the 527 usable surveys returned, only 141 respondents (26.8%) indicated that they used one or more of the strategic planning steps. ■ Those who used strategic planning had significantly better pharmacy performance measures, including new prescriptions, refill prescriptions, gross margin, and rated patient care performance, than those who did not. Furthermore, those who used all seven steps had better results than partial users.
MTM pearl As our health care system continues to evolve, pharmacists who manage a prac-
tice need to take note of the importance of strategic planning. First, develop a mission statement and goals and objectives for your practice. This will help guide your practice and future decisions. Next, perform a SWOT analysis to determine your practice’s strengths and weaknesses as well as external opportunities and threats. Then, review your practice structure and systems. Last, as new opportunities or threats emerge, evaluate and change the strategic plan. As pharmacists look to implement newer services such as medication therapy management, they may need to hire new employees, ask some employees to assume new responsibilities, and create processes to ensure practice efficiency and effectiveness. Writing down the strategic plan, sharing it with employees, and identifying responsibilities is critical so that the plan becomes a dynamic document that owners, managers, and employees can go to for guidance. As I mentioned last month, I do have concerns about the future viability of my practice, but I also know that I can improve my chances of surviving—and hopefully thriving—with proven business techniques, including strategic planning. If you have not developed a plan, now is the time. If you have a partially used plan, engage in the full process. And if you already use strategic planning, continue evaluating and updating your plan. My friend who asked about my 5-year plan summed it up when he said, “Your practice is your future—always be aware of your competition, be ready for new opportunities, and make the necessary adjustments to stay competitive.” That’s good advice for all of us. Reference 1.
Harrison DL. Strategic planning by independent community pharmacies. J Am Pharm Assoc. 2005;45:726–33.
Randy P. McDonough, PharmD, MS, CGP, BCPS, FAPhA Column coordinator
[email protected] Co-owner and Director of Clinical Services, Towncrest and Medical Plaza Pharmacies, Iowa City
FEBRUARY 2013 •
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