Your leadership as a board member is more crucial now than ever.
Senior living communities are navigating complex and shifting markets, and you’re at the forefront of these challenges. Navigating an unpredictable market, rising operational costs, and changing policies require sharp decision-making and forward-thinking leadership. What does it take to provide effective governance in an ever-changing market?
Creating a proactive strategic plan
Effective governance starts with a strategic plan. But not just any strategic plan. Boards often create these documents only to shelve them, missing the benefits of aligning their plans with daily operations.
But to be successful, the board must translate these foundational strategic goals into daily operations. We call this process strategy and operational alignment. Strategy and operational alignment can help your organization:
- Become proactive with initiatives rather than reactive
- Increase collaboration amongst departments
- Optimize resources
- Improve efficiency in operations
- Enable better decision-making
- Adapt to market changes
- Enhance competitiveness in the market
- Provide clarity in vital performance monitoring
- Mitigate risk
So why do so many organizations fail to operationalize their strategic plans? It comes down to a lack of clarity and accountability.
Having a strategic plan isn’t enough
The problem with your strategic plan might not be your goals, but a lack of clarity and accountability for how to execute them. Boards need to foster a culture of clarity and accountability to turn well-intentioned strategies into actionable success.
Accountability starts with the board setting clear expectations for the leadership team and providing the necessary support to achieve these goals. Every aspect of daily management, including talent acquisition, financial oversight, resident care, medical services, dining programs, and family communication, plays a role. It is crucial that everyone, not just the board, understands the strategic plan and adjusts their workflows to align with the new standards set by the board. When all groups follow the same strategic goals in their daily work, they help accelerate organizational growth and reduce risk.
We help clients reach strategy and operational alignment and build accountability through a process called organizational life cycle analysis.
Organizational life cycle analysis
Organizational life cycle analysis involves examining the various stages of an organization’s development, from inception through growth, maturity, and potential decline. There are three steps, or stages, to implement the life cycle renewal process: analysis, planning, and reset.
Step 1: Analysis
A thorough analysis stage provides a clear understanding of current market conditions, operational efficiencies, and financial health.
- Market studies: Determine the condition of your current organization and position your product for maximized outcomes.
- Property condition assessments: Examine buildings’ marketability, plant, exteriors, and finishes.
- Operations assessments: Take a closer look at roles and responsibilities within your organization, current systems, processes, models, and workflows followed by staff, and the culture advertised versus the culture reflected.
- Financial models: Evaluate financial performance, including fixed cost analysis, expense management, product service pricing, and revenue cycling.
Step 2: Planning
The planning phase allows the organization’s mission and strategic goals to be well-defined and aligned with daily operations, fostering a unified direction.
- Creating a mission: Develop a mission statement that creates identity and guides culture and growth.
- Crafting a customized strategic plan: Reflect the organization’s mission in the strategic plan.
- Setting operational strategies: Align operational initiatives with the strategic plan.
- Using tactical approaches: Employ process measures, data, and tools for efficient alignment between strategy and operations.
Step 3: Reset
The reset phase allows for the optimization of resources, introduction of new products, and strategic repositioning, leading to enhanced competitiveness and sustainable growth.
- Fund and optimize: Invest in the journey to a renewed business life cycle.
- Invest in operations, products, & service mix: Enhance operational efficiency and product offerings.
- Introduce new products: Innovate and expand the product line.
- Repositioning, development, & acquisitions: Strategically reposition the organization for growth.
The critical role of the board
Board members hold the power to drive meaningful change. But many organizations struggle to see the results they expected from their strategic plans. Boards must have strategic plan and operational alignment, and a culture of accountability to survive, transition, or grow.
Looking to bridge the gap between strategy and execution? Reach out to Plante Moran Living Forward for guidance on aligning your organization's mission with actionable plans.
