Strategic Alignment in the Last Several Years, Essay

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Strategic Alignment

In the last several years, the Strategic Alignment Maturity model is focusing on understanding how an organization can evolve with the different challenges they are facing. This is achieved by carefully examining the business and IT configuration of the firm. To fully understand how this works requires comparing the model with an actual health care organization (i.e. Kaiser Permanente). These insights will illustrate its effectiveness and how it helps companies to adapt. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)

I.1 Business Strategy 2

Kaiser Permanente is a managed care provider. They are focused on primarily delivering affordable low cost solutions to patients. This is accomplished by controlling expenses and investing in areas that will address their continuing needs. To achieve the objectives the firm operates three divisions to include: the Kaiser Foundation Health Plan, Kaiser Foundation Hospitals and Permanente Medical Groups. The different kinds of products / services offered by the organization include: low cost health plans, research on market conditions and providing health care solutions. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)

It is located in nine states to include: California, Colorado, the District of Columbia, Georgia, Maryland, Virginia, Oregon and Washington. The competitors of the firm are from: HMOs, insurance companies, Blue Cross / Blue Shield, PPOs and private health care providers. Some potential organizations which could be affecting the business are the increase in the number of providers staring in 2014. This is when the Affordable Care Act will take effect and consumers will have greater choices among providers / plans / solutions available. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)

In this case, the firm is perfectly aligned by having numerous sources of revenues, the ability to adjust and a profitable operating structure. These factors make it more flexible to numerous challenges it will face. One area where it could make improvements is to expand its services beyond the nine states. A possible avenue in achieving these objectives is to form strategic alliances with other HMOs, insurance companies and health care providers. They can offer coverage in these areas and help to increase Kaiser Permanente's customer base. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)

I.2 Distinctive Competencies

The critical success factors are that Kaiser Permanente offers health care services through their own facilities. This helps them to control costs and offer members with reduced premiums. The core competencies which assist the firm are: the tremendous amounts of research provided, they have an outstanding reputation and the pricing structure is reasonable. In this case, the firm is where it should be when it comes to its core competencies and factors contributing to their success. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)

I.3 Business Governance

The company sets its relationship between the different stakeholders through its practices and procedures. This is accomplished by establishing a mode which is focused on reducing costs, increasing services and profit margins. While ensuring that the needs of patients, management, stockholders and the board of directors are consistently achieved utilizing the pre paid care system. The company is currently partnered with Thrive. They are nonprofit organization affiliated with the Methodist church. ("About Us," 2013) (Wheatley, 2013) (Chandler, 2003)

II.4 Administrative Structure

The administrative structure is controlling costs through actively being involved in every aspect of the way health care services are delivered. This occurs with owning hospitals, hiring doctors, setting up prepaid HMO plans and conducting on different issues impacting the sector. The management structure is following a horizontal model. This is when there will be different divisions to perform various functions. These are controlled by executives at the location. They will determine the specific needs based upon cost and the demand from plan members. ("About Us," 2013) (Wheatley, 2013) ("Strategic Alignment," 2013) (Chandler, 2003)

II.5 Processes

The workflow activities involve the different staff members regularly collaborating with stakeholders. This occurs as they will meet with patients and regulators based upon the practices. That is embraced inside those health care organizations owned by the firm. They will interact with supervisors and managers who will report what is happening to the board of directors. ("Fast Facts," 2013) (Wheatley, 2013) ("Strategic Alignment," 2013) (Chandler, 2003)

The board will run the organization and address critical issues they are facing. A similar process occurs when it comes to the managed care plan and the research they provide.

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In this case, the workflow of activities is moving up the chain of command with each level doing something to improve how services are offered and their costs. ("Fast Facts," 2013) (Wheatley, 2013) ("Strategic Alignment," 2013) (Chandler, 2003)

II.6 Skills

The firm's HR considerations are focusing on utilizing the skills of staff members to build the organization. This means that they are working to help everyone to have a lasting career. The way that this is achieved is to advertise on various job boards, postings and go to numerous fairs. This provides them with a list of potential candidates who could meet the qualification. Those who go through the interviews and are hired will be sent to two years of training. This is introducing them to the responsibilities they will have and the mindset they must embrace. ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

The firing procedures are clearly defined ethical standards and guidelines. Everyone who works at the organization agrees to follow these practices in the form of written contract. If they do not there is the possibility they could be subject to disciplinary action. The way they motive stakeholders, is to have a series of community related events, offering competitive compensation packages and the chance to make a difference in member's lives. The corporate culture is a relaxed atmosphere. It is based on openness and quickly adjusting to new challenges. ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

III.7 Technology Scope

The important IT applications are the way these services are delivered. The moment someone needs treatment or has signed up for a managed care plan, is when all of their information will be stored electronically. This identifies any changes in the patient; it communicates with others inside the organization and controls costs. At the same time, they are using different medical devices and equipment to help improve quality. ("Our Vision," 2013) ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

A good example of this can be seen with physicians using computers and robotic technology more. These areas are showing how the firm is utilizing this to reduce costs and improve quality. However, in order to stay at the cutting edge a larger amount of these solutions should be embraced. This will reduce costs further and it will decrease the number of mistakes. ("Our Vision," 2013) ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

III.8 Systemic Competencies

The IT services of Kaiser Permanente are concentrating on offering programs and next generation solutions to stakeholders. This occurs through: a platform that has unlimited bandwidth, adjusting to the continuing needs of stakeholders and implementing changes in the form of workable solutions for the entire organization. These areas help it to have a better approach. This enables them to control resources and costs. ("Our Vision," 2013) ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

III.9 IT Governance

The basic model which is being utilized by Kaiser Permanente is the control theory. This is when the management, the board of directors and staff members are closely aligned with each other to achieve the larger goals of the organization. What makes this approach so unique, is the firm is applies these insights to their divisions and the way everyone works together. This helps address the needs of stakeholders and other challenges in the future. ("Our Vision," 2013) ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

IV.10 Architecture

The architecture is integrated together into a single platform. This allows stakeholders to more effectively communicate with each other and among the various departments inside the organization. At the same time, the different policies are focused on improving training and the ability of staff to respond to critical issues. This has resulted in the company selecting mainframe computers from EMC and then having everything interconnected through a Microsoft platform. For security, the organization is currently utilizing MacAfee. This is illustrating how they are at the forefront for innovation when it comes to the utilization of technology. ("Our Vision," 2013) ("Fast Facts," 2013) (Wheatley, 2013) (Chandler, 2003)

IV.11 Processes

The practices are concentrating on maintaining effective security, adding new features and continuously keeping everyone updated. Maintaining effective security is handled through an onsite IT administrator. They will work with third party consultants to test the organization's technology for vulnerabilities utilizing the latest tactics. In the event they identify a.....

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