Starrk Pediatric Center, SWOT Analysis Example

Background

Richmond, Virginia-based Starrk Pediatric Center (SPC) is a 50-bed facility, founded by Cote Starrk family in 2009. SPC provides a range of primary health care services to infants, children, and adolescents. SPC provides the highest-quality healthcare to patients in accordance with the standards recommended by the American Academy of Pediatrics. The facility is headed by Chief Executive Officer, Dr. John Jay who is assisted by a team of eight board-certified pediatric physicians.

SWOT analysis is an analytical tool that helps understand the strengths and weaknesses of an organization as well as the opportunities that could be taken advantage of and threats that should be dealt with (MindTools). Even though SPC has been profitable since its inception, Dr. Jay believes SWOT analysis will provide valuable insights that could be used to further improve operating performance and strengthen SPC’s competitive position. Dr. Jay was specifically chosen by the Starrk Family to lead SPC because he has extensive experience in the administrative positions at large-scale healthcare facilities.

CEO

Dr. Jay’s primary responsibilities include setting organizational objectives, monitoring organization performance, and improving employees’ morale. Despite his extensive administrative experience, Dr. Jay started his career as a pediatrician and do see patients from time-to-time, especially during rush hour. Dr. Jay’s management team include Mr. Robert Dan who serves as Chief Financial Officer (CFO), Ms. Jennifer Holmes who serves as Human Resource Manager (HRM), and Mr. Simon Paul who manages operations and inventory as Chief Operating Officer (COO). Dr. Jay ensures that physicians enjoy complete autonomy in performing their roles which is why he enjoys high loyalty rate among his physician team. The physicians can make direct work-related requests to the relevant management team member, without first seeking Dr. Jay’s approval and Dr. Jay encourages his management team to respond to physicians’ needs in a timely manner.

Dr. Jay presents his report twice a year to Liliana Starrk who represents the Starrk family. Dr. Jay’s reports include SPC’s performance data, future expectations, emerging trends, and any events that may be material to the organization. Dr. Jay’s meetings with Ms. Starrk also involve strategic review as well as setting goals for the next six months.

Dr. Jay has several strengths that make him ideal for the CEO position. First of all, Dr. Jay is himself a pediatrician by practice. His pediatric background helps him build credibility with the physicians’ staff and understand their challenges and issues. His administrative background enables him to ensure that SPC’s limited resources are efficiently utilized because he understands that SPC is a for-profit facility. Dr. Jay also ensures a productive working relationship between the management and the physicians because he can see things from both perspectives, due to his background as both a pediatrician and an administrator.

While Dr. Jay enjoys close relationship with physicians thus, he may be hesitant to implement measures that are unpopular among the physicians though such measures may improve the facility’s profitability. Another weakness is Dr. Jay’s democratic leadership style which emphasizes consensus and physicians may most likely not support tough measures that reduce their independence. Dr. Jay’s situation is typical because management and subordinates usually enjoy close relationships at small organizations like SPC and decisions are usually made in a democratic manner because everyone’s support is essential for the success of any proposed initiatives.

Knowledge Requirements        

To conduct the SWOT analysis, one needs to understand the roles, needs, and priorities of different stakeholders in SPC such as management, physicians, and owner. One also needs to have knowledge of the personalities of the stakeholders involved in order to predict their likely reactions. Similarly, one needs to know the business model and how it impacts different players within the organization. One should also keep a close eye on the external factors that impact the organization as well as the organization’s competitors.

Dr. Jay doesn’t only have a background in pediatrics but also has extensive administrative experience. This makes him well-suited to carrying out the SWOT analysis because he understands all aspects of the business. He has the ability to view SPC as both a healthcare provider and a for-profit organization and can create more optimal balance between the two objectives than anyone else.

While Dr. Jay has managed operations, his experience has mostly been at large-scale organizations. Large-scale and small-scale organizations sometimes have different competition dynamics, thus, it is possible that Dr. Jay doesn’t do as good job of understanding SPC competitive environment as he has done as other large-scale healthcare organizations. In addition, Dr. Jay’s previous experience has mostly been in operations but now he is the CEO. Thus, his understanding of external factors may not be as good as internal factors.

Dr. Jay may have to spend more time outside the organization to meet with other industry leaders to better understand external factors. Dr. Jay may also have to hire consulting services with experience in small-scale healthcare providers such as SPC. In addition, Dr. Jay may also have to read more industry journals to gain insights into the latest trends and best practices.

Regulatory Compliance

SPC holds license from Virginia Department Health to provide healthcare services. SPC is inspected every two years as a requirement of the license. The organization is also certified for federal reimbursement under Medicare and Medicaid (Virginia Department of Health). Similarly, SPC also complies with other applicable laws such as Occupational Safety and Labor laws.

Dr. Jay has extensive experience so he has acquired knowledge of applicable regulations through experience. The individuals primarily responsible for ensuring compliance with all applicable laws are HRM, Ms. Jennifer Holmes and COO, Mr. Simon Paul. In addition, the company has a legal counsel that regularly audits the company for compliance with applicable laws.

If any regulatory requirements are violated, SPC may lose its operating license and/or face fines. In addition, the company’s reputation may also take a huge hit, negatively affecting its current and prospective client base.

Summary

Dr. Jay’s leadership teaches us that it pays to have someone who understands the perspectives of different stakeholders in the organization. The SWOT analysis demonstrated that change is not always easy because it often requires behavior change from different stakeholders which is not always easy. In addition, SWOT analysis also showed that large-scale and small-scale organizations may have different challenges in implementing SWOT strategies because leaders are closer to followers due to frequent personal interaction at small organizations.

References

MindTools. (n.d.). SWOT Analysis. Retrieved October 31, 2012, from http://www.mindtools.com/pages/article/newTMC_05.htm

Virginia Department of Health. (n.d.). Hospitals. Retrieved October 31, 2012, from http://www.vdh.virginia.gov/OLC/AcuteCare/hospitals.htm