assets hold great tactical potential for strategy, but if not deployed to
targets at the right time may be of little or no value.
a conversation with a senior financial officer of a very large health system in
the U.S. the topic of “speed-to-target” was raised as an element of health
system strategy. The response to the related question was,
“We don’t think like that”.
was a very candid and honest response, not an indictment of the concept.
point is, speed-to-target is an important element of any strategy, the
assumption is the right tactic deployed at the wrong time (or too late) may be
a waste of time, resources and opportunity.
illustrate, a piece of “real estate” (geographic market) may hold great value
for a strategic ambulatory center until a competitor ties up the property or
beats you to the location with a competing strategy. Or:
- a strategic independent medical group is
purchased by a competitor; or
- a competitor executes a targeted market
launch of a new clinical service line, or
facilities strategies, especially, require long lead-times; frequently from 3-4
years from start to ribbon cutting, depending upon land acquisition and prep
requirements and design, engineering and construction challenges.
- an organization puts-off a major
facilities expansion as it builds its balance sheet capacity for a future
institutional debt offering
As consolidation of the U.S. healthcare market
place proceeds apace, health system leaders will need to consider speed to
targets, among other important elements of effective strategic plans, and
strategic critical thinking. The right solution a day late may be worth zero