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Conduct a S.W.O.T. Analysis Before You Need a S.W.A.T. Team!

Conduct a S.W.O.T. Analysis Before You Need a S.W.A.T. Team!

Posted on by MDSadmin

You have the ability to take your business wherever you can imagine. The first step in any journey is planning. The old mantra goes, plan your work and work your plan. Those are great keys to success. Develop a plan and then focus and stick to it. Not that it won’t need tweaking and adjusting along the way, but as long as you can stay focused and true to your mission and goals, you can accomplish anything in life and in business.

The first part of planning any journey is to decide where you’re at currently. I was raised back in the day of paper maps. Every summer my grandparents would take us on vacation and I would be the navigator. About a week before we left my grandfather would sit down with me and a map and we would not only map out our primary route but we would also have a secondary route as well. The very first step of this process every year would be pointing to the reference of Fort Worth, Texas on the map and he would say “this is where were starting from”.

Current Location                                                 

It’s the same way with business. You have to know where you’re at before you can develop a great plan leading to your desired goals. That is the beauty of the S.W.O.T. analysis or Strengths, Weaknesses, Opportunities, and Threats analysis. It’s a great process to perform in order to start the planning process and create your roadmap or strategic plan for success. This analysis works well for evaluation of products, departments, strategies, or an entire company.

The first part of the analysis, the S.W. (or strengths and weaknesses) portion, is an internal view of the product, department, or company. You are looking for and listing strengths and weaknesses of the target you’re evaluating. It can vary depending upon what you’re evaluating, but here are a few examples.

Strengths could include:

  • What does your organization do best?
  • What’s unique about you product, staff, company, or etc.
  • To what resources do you have access?

Weaknesses could include:

  • Employees not trained
  • Substandard customer service
  • Sales process too complicated

The second part of the analysis, or the O.T. are the opportunities and threats you see, which is a view of the external. These are the opportunities and threats created by or posed by outside forces to your product, department, company or whatever you are evaluating. Again, this will depend upon what you’re evaluating, but here are a few examples.

Opportunities could include:

  • New trends
  • New markets
  • Organic growth possibilities

Threats could include:

  • Existing competition
  • New competition
  • Competitors’ use of new technology

Planning Tool

While this was a very condensed overview of a S.W.O.T. analysis, you can see the value in performing one before beginning your strategic planning for 2015. It is also important to get buy-in for those who will be participating. It is advised to reach outside of your executive team and chose employees to participate from different departments and levels in the company. To ensure open and honest dialogue, employees will need to feel the environment is safe and they may speak freely.

Schedule a series of meetings over the course of a few weeks instead of one long session. This will help keep everyone focused on the task at hand and not worrying about day to day activities. Make sure there are no cell phones and only interruptions for true emergencies.

Keeping the sessions positive is a MUST. Even though you may uncover some things in which you were unaware or are troubling, look at this as an opportunity. Had you not conducted the S.W.O.T. analysis you might not have discovered challenges until it was too late. Draw on the message in my last blog about balance, when things seem out of control, there are still opportunities to be had.

I would enjoy working with you and your professional team to help you conduct both a S.W.O.T. analysis and a business wellness checkup, as well as moderating your strategic planning sessions. These two tools will be a great way to kick off and jump start your 2015 strategic planning process.

 

Roy Barker is Director of Special Projects at Moore Diversified Services, a Fort-Worth, Texas-based organization specializing in operations analysis, marketing development, and investment advisory services. Roy is an authority in the field of employee turnover analysis and retention strategies.

Where Do I Start?

Where Do I Start?

Posted on by MDSadmin

As you start your strategic planning for 2015 you might ask yourself “where do I start?” You have a lot of areas that you would like to tweak and improve as you start into the new year. Two great starting points are a financial wellness checkup and a SWOT analysis (SWOT is an acronym for strengths, weaknesses, opportunities, and threats).

The financial wellness checkup will give you a great base to start thinking about areas where you could sharpen your focus to improve your operational and financial health. A SWOT analysis will give you an opportunity to look at your departments, community, or company’s current strengths and weaknesses in order to develop strategies to take advantage of new opportunities and to defend against threats. In this blog I cover the financial wellness checkup and I will discuss the SWOT analysis in a future blog.

Benchmarking

It follows the old adage and answers that question where do I start? Of course, from the beginning! But where is the beginning really? There are so many different moving parts to your organization and there are so many different areas that you would like to change as you move forward. This is why it’s important to establish a baseline of where you are at today. This is where financial benchmarking comes in. Financial benchmarking has become a priority with senior managers in the senior living industry to determine where they are today and more importantly to chart a path of where they would like to be next year and in the future beyond.

It’s like going to your family doctor for a checkup and finding out your blood pressure, cholesterol, and sugar levels. Once you know what these levels are then you can begin developing a plan to make the desired changes in things like your lifestyle and/or diet in order to achieve optimal levels prescribed for you.

It’s much the same way with the financial wellness check and benchmarking. You look at your revenues and expenses based on different line items and departments, then compare them against generally accepted industry benchmarks. This boils down your complex operations to a few high-level numbers that are more easily managed. It is also recommended that you convert your revenue and expenses into a per resident day (PRD) basis this allows for a much easier comparison. You will want to be aware of the variance between your current year budget and your current actual spent year-to-date. It is also recommended that you look back over the last 3-5 years at changes in budget and variance year over year.

Making Needed Changes

Once you have compared your actual operating financials to the benchmarks the areas that need the most attention will come to light. This will provide you with a roadmap of where the most impact can be made in adjusting your operating budget, if necessary. Then you can dig in with further analysis of areas in which you would like to improve or change. This would be a great opportunity to use the SWOT analysis to help facilitate change and direction.

Another drain on a community’s financial health that we often see in the senior living industry is “cost creep”. This is basically the uncompensated care provided to the residents of your community. It is important to stay on top of resident care plan and evaluations to ensure your revenue for resident care matches the expenditure for actual care provided. MDS has a couple of templates that allow us to take a high level look at the minutes of direct care staff you are providing to your community and see how it compares to expected care provided and revenue based on current resident acuity.

Kick-off 2015 Strong

As you can see, conducting a financial wellness check is a great way to kick off your strategic planning for 2015. It will give you a snapshot of where you are today and also provide valuable information to incorporate when planning for the future. I would appreciation the opportunity to work with you and your professional team in conducting this financial wellness check, providing assistance with a SWOT analysis, and help moderate your 2015 strategic planning sessions. Let’s get you on the calendar today before too much time slips away.

MDS also offers a “shared executive” retainer program. As a retainer client, we can help monitor your operation metrics, provide important commentary on the industry and your business, and become a strategic partner in the success of your operation throughout the year. This has become a very popular program with our existing clients because of the tremendous value added through MDS’ staffs’ many years of experience in the industry delivered to you at a fraction of the cost. I would be happy to discuss your individual situation and develop a customized “shared executive” plan to suit your needs.

 

Roy Barker is Director of Special Projects at Moore Diversified Services, a Fort-Worth, Texas-based organization specializing in operations analysis, marketing development, and investment advisory services. Roy is an authority in the field of employee turnover analysis and retention strategies.

MDS Would Like To Say Thanks To Loyal Readers With Complimentary Book Chapter and Special Offer

Posted on by MDSadmin

 

As our way of saying thank you to our blog subscribers we are offering A COMPLIMENTARY CHAPTER from Jim Moore’s “Independent Living and CCRCs, Survival, Success & Profitable Strategies for Not-For-Profit Sponsors and For-Profit Owner/Operators”, a must-read sequel to his previous BEST SELLING book “Assisted Living Strategies for Changing Markets”.   Current subscribers, please email roybarker@m-d-s.com and he will gladly forward your complimentary chapter.  If you are not yet a subscriber, simply subscribe to our blog TODAY by placing your email address in the sign up box on the far left hand side of this page and your chapter will automatically be sent to you.

As an added BONUS for our loyal followers (both new and old) we are offering this wonderful work of writing at a PROMOTIONAL RATE! Remember to sign up for our blog (if you haven’t already) and just click the link below to receive your own copy for the special promotional rate of ONLY $40 (shipping and handling included).   This book retails for over $60 with shipping and handling.

SUBSCRIBE TO OUR BLOG TODAY and take advantage of this special promotional price! (For a limited time while supplies last.)

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Where Has 2014 Gone?

Where Has 2014 Gone?

Posted on by MDSadmin

By Roy Barker

I woke up this morning like any normal morning. Stumbled to the coffee pot, ran out and got the paper (yes I still have one thrown), checked some emails as I looked out the window at another beautiful sunny 81 degree morning. For those of you that have not spent a lot of time in Texas, any August morning below 90 degrees is a winner!

So I’m looking at my schedule wondering how it got so messed up that I’m in Texas during this time of year and not enjoying the beautiful Massachusetts coast right now, but that’s another discussion. As I am contemplating this dilemma, I get a calendar tickler about setting some January 2015 communication goals. Really! 2015! Where has 2014 gone?   It was just last week I was relating how there is still time to make changes, which can have a positive effect by the end of 2014. Now I am writing to say, oh by the way, we also need to start thinking about 2015, if not NOW, at least very shortly.

So let’s talk a little about planning for 2015. Strategic Planning can eliminate stress and surprises by setting clearly defined goals for your company and/or community and communicating them to your employees. It can ignite creativity with your staff and stoke efforts for positive changes.

It’s beneficial to create a sound plan so you can allocate your resources, both financial and human, to accomplish your main goals. Strategic Planning can provide a guidepost to measure progress and indicate where changes need to be made. With everyone on the same organized page, you can expect to see goals accomplished, greater productivity, and a happier workforce.

Here are a couple things you will need to keep in mind while getting ready to start your Strategic Planning process.

  • You will need to perform a SWOT Analysis (Strengths, Weakness, Opportunities and Threats). There is a lot of documentation out there on this process. Remember the Strengths and Weakness are internal and the Opportunities and Threats are external. I think this is such a great opportunity for every company to really see who they are and where they are at today. You have to know where you are in order to find the most appropriate path to where you want to be.
  • Involve your team. This should be a combination of those from your management team, positive and creative individuals within your company, and leaders in the workforce. Start early enough to where you can poll all employees with a problem solution proposition. It’s important to find out what road blocks front line employees are encountering in providing excellent customer service. It’s important to get employee buy-in to changes that need to be made.
  • Strategic planning is not a onetime event. Have a few shorter meetings rather than trying to cram everything into a onetime event. This will help reduce interruptions and also give those involved time to really think about the items in play and how best to proceed.
  • Start early. Give yourself and your team time. I know there are some of you that already have this on the calendar for December 31st at 3pm. While I applaud you for your forward thinking, you may want to build in a little more of a time cushion. Give your team time to prepare, send out some general topics for them to start reflecting on.
  • No interruptions. This is another good reason why scheduling a few shorter sessions is better than one long one. Make sure phones are off and subordinates are aware that there are to be no interruptions except for true emergencies. I will go out on a limb here and say that NO, a change in tee time, while disturbing, should not be considered as a true emergency. To help combat normal business interruptions it is recommended holding these meetings at an off-site location
  • Don’t let this turn into a gripe session. This is most important for the functionality of the time committed but also the attitude the group takes on going forward. This is not the time to talk about the water cooler that is warm or replacing a worn out printer. Those are normal maintenance issues that already have a channel for resolution. While we have to talk about what we want to change and why, focus on positive. What can we accomplish? What are our solution options?
  • Cost of solutions/changes. We must take into account the cost of changes or solutions to issues. It is important to have someone with knowledge of your company’s actual budget on the strategic planning team. Are making the changes realistic? Can you find the money to do it? While you may have to push the budget envelop in order to get real changes made, it is always better to be able to plan within your budget parameters. This also gets back to starting early. If you do have some costly items to address, it gives you and your team time to incorporate them into the 2015 budget.
  • Work with a knowledgeable facilitator. It’s always good to have someone from the outside present in these meetings. It’s an even bigger benefit to have a facilitator that is familiar with the industry as well as strategic planning. A good facilitator will help keep the meetings moving and productive, keep the group on task, and provide insight into the process where necessary, and be the impartial voice of reason where cooler heads prevail if/when discussions get heated.
  • Make the process fun! I know this can be difficult, but it is important to get everyone to rally behind the fact change will be good. This should be a light air of collaboration. Even though there may be some hierarchical challenges in the room, it’s imperative to rid this process of intimidation if you want the best ideas and eventual buy-in.
  • Buy-in at the top. You can’t fake this. Well you can, but it’s very easy to spot someone going through the motions that is not completely sold on the process or its results. Give your staff credit, they are smart enough to know the difference and they don’t even have to be on the same campus as you. Believe me when I tell you, it will show through many, many miles away.

I know it may seem crazy to start thinking about 2015 while we’re still in the Dog Days of Summer, but it will be here before you know it. School will be starting soon and then we will be into the Holiday Season before we know it. Give some thought as to who in your organization would be a positive influence on this process. What are some things you would like to see changed? More importantly, what are some things your prospects, customers, clients, resident, vendors, staff, and partners want to see changed? If you don’t know what these are, now would be a great time to conduct surveys or focus groups to find out.

Don’t wait much longer to get the process of Strategic Planning for 2015 underway! Give me a call and let’s put MDS’ 40+ years of experience to work for you and your team mapping out a great plan for 2015!