Health Administration Press Strategic Analysis for Healthcare Chapter

Health Administration Press Internal Factor Evaluation • Just as an external factor evaluation (EFE)

Health Administration Press Internal Factor Evaluation • As you did with the EFE analysis,

Health Administration Press Internal Factor Evaluation • The strategist evaluates each strength and weakness

Health Administration Press Internal Factor Evaluation Copyright © 2016 Foundation of the American College

Health Administration Press Internal Factor Evaluation • The previous slide shows, for instance, that

Health Administration Press Internal Factor Evaluation • Once weights have been assigned to the

Health Administration Press Internal Factor Evaluation • The rating for each factor is once

Health Administration Press Internal Factor Evaluation • The IFE analysis yields a total score

Health Administration Press Internal Factor Evaluation • Note that the weight is industry specific.

Health Administration Press Exercise • Break into groups and complete an IFE chart in

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Health Administration Press Internal Factor Evaluation • Just as an external factor evaluation (EFE) organizes and evaluates the OT section of SWOT, an internal factor evaluation (IFE) addresses the SW section—the internal strengths and weaknesses. • The IFE produces a numeric score that reflects the gravity of each issue listed. • The score will correspond to certain standard strategies that will be discussed in Chapter 19. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • As you did with the EFE analysis, note that not every item you identified in the SW section of your SWOT analysis is of equal strength or equal weakness. • Some distinction needs to be made between the “great” strengths and weaknesses and the “could be” strengths and weaknesses. • To begin to make these distinctions, review the SW section of SWOT from the previous chapter. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • The strategist evaluates each strength and weakness and applies a weighting system. • The total when all of the weights have been applied and added is exactly 1. 00. • Each individual factor, therefore, receives some portion of 1. 00. • The size of that portion reflects the strategist’s subjective evaluation of how important each internal factor is to successful competition within the firm’s industry. • The more important the factor, the higher is the weight assigned. • The total of 1. 00 is the sum of the whole column, including both strengths and weaknesses. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • The previous slide shows, for instance, that the weakness associated with managing a significant population without health coverage is deemed to be more significant than the strength of the organization’s technology, administration, or facilities. • Note that there is no one “correct” weight for any factor. • The accuracy of the analysis depends on the strategist; careful research and a clear understanding of the company and industry are essential. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • Once weights have been assigned to the importance of each factor in the industry, the strategist now focuses on how significant each strength or weakness is for the organization. • Strengths and weaknesses are rated on a scale of 3 – 4 for strengths and 1– 2 for weaknesses, as shown here: 4 = major strength 3 = minor strength 1 = major weakness 2 = minor weakness Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • The rating for each factor is once again subjective on the part of the strategist and should be based on research. • These ratings are not added up, so there are no constraints on how the numbers may be distributed. • Once the ratings have been applied, each factor’s rating is multiplied by its weight to yield a weighted score for the factor. • The next slide continues this example. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • The IFE analysis yields a total score when the column of individual scores is summed. • This score can be used in an internal–external (I/E) matrix, which corresponds to a standard table of strategic responses. • We will explore these steps in the next chapter. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Internal Factor Evaluation • Note that the weight is industry specific. • The rating is organization specific. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press Exercise • Break into groups and complete an IFE chart in the space provided on page 123 of your book. • You will need the SW portion of SWOT that you completed in the last chapter. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.