HA4110D DQ8 Healthcare Internal Strengths & Weaknesses A strength can be thought of as any internal attribute of the organization that is helpful in achiev

HA4110D DQ8 Healthcare Internal Strengths & Weaknesses A strength can be thought of as any internal attribute of the organization that is helpful in achieving corporate objectives, a weakness can be thought of as any internal attribute of the organization that is a hindrance in achieving corporate objectives. Review Exhibit 17.2 in your book choose two strengths and weaknesses and explain how an executive leader would use them in strategic planning.Use your own thoughts on this discussion.A minimum of 250 words is required for your initial post. Be sure to respond to two fellow students with a minimum of three sentences per response. Health Administration Press
Strategic Analysis for Healthcare
Chapter 18
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College of Healthcare Executives. Not for sale.
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
Start of IFE Analysis
Internal Factor
Evaluation
Strengths
Weight
1. Local Market Dominance
0.100
2. Caring staff
0.050
3. Excellent administration
0.050
4. Good location
0.025
5. Outstanding facilities
0.050
6. Strong community support
0.025
7. Excellent Board of Trustees
0.025
8. Expanding to meet growth
0.050
9. Center of regional health care
0.050
10. Technology
0.075
Weaknesses
1. Weak process to manage low-income
population
0.050
2. Inability to manage population without health
coverage
0.100
3. No process to address transient market
0.025
4. Difficulty recruiting providers
0.025
5. Reputation of the facility
0.050
6. Changes in Reimbursement
0.100
7. Staff turnover
0.050
8. Nursing shortage
0.025
9. Need for technical staff
0.025
10. Limited resources in mental health
0.050
TOTAL WEIGHT:
1.00
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
IFE Analysis
Internal Factor
Evaluation
Strengths
1. Local Market Dominance
2. Caring staff
3. Excellent administration
4. Good location
5. Outstanding facilities
6. Strong community support
7. Excellent Board of Trustees
8. Expanding to meet growth
9. Center of regional health care
10. Technology
Weaknesses
1. Weak process to manage low-income
population
2. Inability to manage population without health
coverage
3. No process to address transient market
4. Difficulty recruiting providers
5. Reputation of the facility
6. Changes in Reimbursement
7. Staff turnover
8. Nursing shortage
9. Need for technical staff
10. Limited resources in mental health
Copyright © 2016 Foundation of the American
College of Healthcare Executives. Not for sale.
Weight
0.1
0.05
0.05
0.025
0.05
0.025
0.025
0.05
0.05
0.075
Rating
4
3
4
4
3
4
3
4
3
4
Score
0.4
0.15
0.2
0.1
0.15
0.1
0.075
0.2
0.15
0.3
0.05
1
0.05
0.1
0.025
0.025
0.05
0.1
0.05
0.025
0.025
1
2
1
2
1
1
1
1
0.1
0.05
0.025
0.1
0.1
0.05
0.025
0.025
0.05
1
0.05
1.00
Total
Score:
2.400
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.
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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.
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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.

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