Theo Adams
Western Governors University
MBA Program
(A1)Evaluate the industry environment for your company by doing the following:
Harlow 's help it home is a business that specializes in Home Health Care in the Sacramento, California area. They offer competitive rates and use a highly skilled licensed staff. They specialize in care for disabled children, disabled adults and seniors. This also includes hospice care for those clients and the families to assist with the end-of-life needs.The company and staff follow all state laws and regulations required within the home health industry.
The home health industry is comprised of two types of care companies: Those that offer medical which is considered home health …show more content…
and the others are considered in-home care and they offer non-medical services. Harlows is a licensed home health and in-home care company which offers medical and non-Medical Services. Harlow 's is able to offer both types of services due to the licensed staff we employ as well as being a licensed home health company in the state of California.
The most dominant economic feature is market growth rate. The home health industry is one that is fast-growing due to the extended ages of the population as well the potential profits of these companies based upon the current nees of the baby boomers. Home health companies generally cater to clients and the families of clients 70 years and higher. As the baby boomers age the need of services grow. Families have a choice between smaller local companies and larger national ones to care for their families.
(A2) Driving forces:
Changing societal concerns attitudes and life-styles . With physical fitness, healthy life-styles and overall nutritional information increasing has led to people living longer. Our families are always important however we do not always have the ability nor time to care for our disabled child, disabled adult loved one or our aging parents so services that offer assistance to this demographic group are a commodity and in high demand. Most of us lack the skill and time to assist our ailing family members and care for them as we would desire them to be cared for. With this said the importance of companies such as Harlow 's and the services they offer are in demand and a high commodity.
Industry growth:
Once again with individuals living longer and the complexity of our lives today the need for companies to assist our ailing family members are going to continue to grow moving forward.
Regulatory changes:
With the importance of caring for our elders, disabled children and disabled adults the government has seen the opportunity that those who would take advantage of the demograhhic group could come into play; And has seen fit to move towards stricter adherence to laws with regards to home health care in those companies that offer such services. These are the reasons that will keep Harlow 's moving forward with positive growth in the future.
(A2a) Explain how you provide for that force in your strategic plan:
Harlow 's plans to make sure their employees are all well trained and versed in all federal and state guidelines for the care of their clients. Harlow 's can easily adapt to any new regulations that come about by continuing training and refreshers for their staff to keep them abreast of any and all industry changes and requirements. As the company grows and gets busier they will continue to hire and train new employees to assure to adhere to compliance in order to maintain quality care and services for their clients this will help with the overall customer service and regulatory aspects of the business. As well as ensure that Harlow 's can continue to hire well-qualified employees. Harlow 's can partner with local vocational institutions this way they will have access to students before they can be hired by the competition in addition to this Harlow 's will continue to pay each employee a competitive salary based upon the current marketplace. (A3) Differentiating competitive characteristics of your industry:
Price:
this is always a major differentiating characteristic in the home health industry. Many companies that charge a cheap rate may not take quality care of their clients based upon those employees no being licensed nor qualified to care for your family members. They also may not have the knowledge needed when certain situations arise to assure the safety of your family member. Saving money with regards to caring for your family may create undue hardship on the family members that need care.
Quality:
Companies that simply tried to take on as many clients as they can simply to be profitable without regard for staffing concerns cannot provide quality care stretching their employees beyond their means to provide quality care. So when companies such as Harlow 's who maintain the proper ratio between clients and staffing can provide safe as well as quality care. This is a characteristic that continues to affect home healthcare because those fly-by-night and unqualified companies continue to try to get rich quick.
(A3a) Analyze where you want your company situated on a strategic group map that you draw using these differentiating competitive characteristics.
The Strategic Map for Harlows Help at Home in its current marketplace is group against four catagories of companies National Companies and Franchises (NAT.), Regional Companies(REG.), Mom & Pop Shops(M/P) and Independants (IND.). The Competitive Characteristics that are being considered are Quality and Price.
The usual standards for the National companies are usually considered High or Good Quality of Care However a Premium is being paid for it. The National Companies that play a role in the Sacrament o area are “Accent Care” and “Home Instead”. The Regional Companies such as “Addus Care” and “Golden Years In home Care” also generally offer a Good level of care for a better price; however their prices can still be considered on the higher side of the marketplace. Then comes the Mom and Pop Companies which Harlows would actually be classified as along with “Visiting Angels”. The Mom and Pop Companies are known more for the Cost Savings then they are known for High Quality Care. This is where Harlows has been able to excel, they offer a higher quality that is better than the larger Reginal Care providers and just a notch below the National Entities. Finally we have the last group which are the independent and freelance care providers which are simply known for inexpensive care but can be considwered high risj as well when it comes to safety and liability. Harlows position in the market and on the map is one that has been on the rise and is moving towards becoming a regional company which it can become in the next 3-5years on its current course and strategic plan.
(A4)Key factors that will impact your company success.
Cost:
in order to reassure that we separate ourselves from the other competitors in our marketplace; we provide quality care with licensed and certified employees. Our pricing is very competitive for the services we provide we will continue to stay that way. We also offer incentives for both prepaid services as well as price reductions for longer contract terms.
Online presence:
Harlow 's continues to offer an online presence that helps clients and their families to access scheduling and servicing information to adjust care plans whenever necessary. Also the strong online presence helps keep overall advertising costs low and visibility high especially considering that traditional advertising such as Yellow Pages, radio and Television ads can be especially costly. This helps Harlow 's gain and keep a competitive marketing edge by targeting its niche audience. Online advertising enables Harlow 's to also advertise on other sites such as craigslist and the pay per click Groupon offers.
Technology:
With all the new legislation and current HIPPA laws it 's important that Harlow 's stays current with the software that it uses. The software program allows privacy of its clients as well as the ability to keep detailed and extensive records for both the employees as well the customers themselves with the laws that are in place detailed records are mandated to be saved for a minimum of 7 years. The software programs also assist the company in keeping their costs low and efficient since it helps with scheduling, payroll services and the running of reports to see where the company is currently at with costs, expenses and profits. The Software also helps with issues such as if a caregiver cannot make their appointment for care services it has the ability to scan the company 's roster to see others that can possibly fill that void that had been left.
(A5) Analyze the impact that each of the five types of competitive forces will have on competition in your industry.
Rivalry:
Harlow 's is competing for for in-home care services of disabled children, disabled adults and seniors in the Sacramento area. Competitors include both licensed and unlicesed private caregivers, senior care homes and national franchises. Harlow 's is extremely competitive in price because of its reduced overhead with the help of the existing software programs as well as the limited need for an oversized brick and mortar location and no franchise fees. With this said there is extreme flexibility that allows quick decision-making as well is the ability to price services appropriately.
Entry barriers:
Currently the entry into home health and in-home care is extremely difficult based upon the new and changing legislation. Even with the current growth of the marketplace the ability to go through licensing qualifications is almost impossible in the state of California.
Bargaining power of buyers:
With the families of baby boomers looking to try to save as much as they can while not losing the quality of care for their families it sometimes can lead to slow or reduced client pool with most insurance companies who provide long-term care policies strictly wanting to place the baby boomers into care skilled nursing facilities versus allowing them to stay home with in homecare providers.
Substitute Products:
With the competition being what it is in this Lucrative industry there is always the lure of “easy money” considering it seems from the outside simply a “babysitting” type job. However this is the furthest from the truth, this is a industry of care for those whom have a special need and at times complex ones. There are those whom try to get into the industry without doing the due diligence that is required. These are essentially the “non licensed” companies/agencies that try to advertise as “companionate or elder day care” type. By trying to enter the industry under this guise they try to circumvent the requirements and try to work for less than the standard care costs based upon industry standards and thusly would be considered a “substitute product. This so called competition is strictly price driven and not actual care quality based upon the actual services these type of compaines provide.
Supplier Bargaining power:
This industry is tied to “care services” so not the typical supplier so to speak. However Harlows is a “Supplier of Care Services” as are the other competitors. Strength of Suppliers in this case are at their highest when specialized services may be required, or if they are indemand because it is felt by the clients that there are no substitutes for their services, which drives up the cost for services that Harlows may charge their clients. These are but 2 simple examples of Supplier Bargaining power. (“Porter five forces analysis,” 2015)
(B1)Vision Statement
To administer and manage the highest degree of quality comprehensive patient and family centered care to all patients within the confines of available resources and services in order to attain and/or maintain the patient’s highest level of wellness.
(B2)Mission Statement
The mission of Harlow’s Help At Home, Inc. is with high ethical standards, principles and heart, a commitment to provide clients with the best in-home care possible. We believe that our patients deserve compassionate, honest, and reliable care from only the top home care professionals, who go the extra mile to provide it.
(B3) Develop a distinctive competency to distinguish your company from competitors.
Competition for in-home health care comes from multiple sources, skilled nursing facilities, independent contractors, national franchises and the mom-and-pop local companies. Harlow 's intent to maintain its market share and continue to grow despite being considered a "local mom-and-pop shop" is based upon the more than 15 years of service at a high standard. This 15 years of service has gained recognition and respect in the region. Harlow 's will continue to separate themselves from the competition by focusing on providing quality care, personal service and a better overall customer experience then that of its competition.
What a Harlow 's does to maintain its distinctive competency and the uniqueness of what we do best is the quality of customer intimacy and superior service that we offer even with the low cost which keeps us more they competitive in our local marketplace. This makes us the best fit for our customers and clients.Simply put we offer premium services in our local marketplace at almost a wholesale price point. (Jung & Polsky, 2014)
(B4) Describe an Example of how the Company could Capitalize on a Market opportunity.
Most market research indicates that baby boomers prefer to use local services that come with strong word-of-mouth recommendations, they prefer to deal with people they know and trust as well as requiring competitive pricing. Harlow 's is a perfect example of this since they use a "best cost provider" strategy. This hybrid strategy gives Harlow 's clients the best costs for top-of-the-line care and services. Even with in-home health be considered a niche service they can receive top-flight care and modest pricing.
One reason Harlow 's can Capitalize on its Strategy of being a "best cost provider" is because Most, if not All of the competition have large overhead expenses. The National Companies/Franchises have higher office expenses in part due to the cost of Franchise fees, Office Spaces and Larger Salaries based upon what the Franchise pay on averages.Some of these are also apparent for the Regional Companies as well with regard to the high cost of the office space. Harlow 's currently is being run out of an office that was build off of the owners home. This has allowed at least the overhead expense to be a non factor as well as Harlow 's not have any Franchise fees or larger than average salaries based upon a national corporation.
Another aspect that Harlow 's can capitalize on is offering "live-in services" for their clients. Currently there are no other companies that offer "live-in" services based upon it not being cost effective for the larger companies with their current expense structure. Harlow 's current expense structure allows them this opportunity; which allows one care giver to offer these services versus the larger companies need to use 3 different care givers to fulfill this function.(Armbrester, 2013)
(B5) Analyze one External threat to the Company.
One of the largest threats for in home healthcare clients are elderly abuse and fraud. These threats can sometimes come under the guise of well-meaning caregivers whom are truly predators; and without the strict protocols and criteria in place to assure that the proper background checks are run to protect our clients and family members. Harlow 's will not allow any caregiver to start service for the company without proper references and all necessary background checks to be complete and put in place.
Part of the services and protocols would consist of making the proper authorities aware if anyone were to cross that line and step out of bounds. Harlow 's has field managers that do periodic drop in on clients to reassure them that they are important and that there needs are of paramount importance. These observational visits help maintain a checks and balance so as to protect the client as well is the company 's interests. (Merrill, 2011)
(B6)Propose one business-level financial objective that fits the Company and Situation.
The definition of a Financial Objective is “An objective set by a company in which the target state is measured in monetary terms, such as a certain amount of profits, or a certain percentage increase in profits over a period of time.”
For Harlow 's the Objective is Revenue Growth; The current share of the market that Harlows holds currently is Approximately 5% and the Goal in the upcomming year is to improve that to 10% and then by year Two be at 15% . This increase of clients and share in the market is a 300% overall increase going into year 3; and this overall improvement can both give an increase revenue without having a drop in quality of care. Also the increase in clients brings increased revenue which also equates to increased profitability.
Measure Success/Achievement:
This can be measured by simply comparing the company 's profitability from last year to this. The Performance metrics that will be used to assist in evaluating this plan will include profit margin, number of cases staff, the number of clients, number of assessments, the number of trained staff and gross revenues. The profit margin will be used to evaluate how the company is performing with regards to cutting expenses and also increasing its revenue. Having the number of cases staff along with a number of assessments done are also important to help with regards to evaluating the growth of the marketplace obviously larger numbers of clients equate to increased market share acquired by the company the the overall increase in revenue.
Strategy:
Increased marketing of the business and advertising is the main strategy. By marketing at senior centers as well as with conservatories and fiduciaries, these help reach out to baby boomers current network and comforts zones. As well as having an online presence this will also improve with overall advertising and give the possibility of connection with the families of those who need care whom are the more "connected" generation. Once again online advertising expenses are minimal compared to traditional media and print and cost far less than television and radio advertising. This gives the business the ability to gain a competitive marketing edge by targeting its niche audience as well as the online presence can also advertise on sites that only charge on a pay per click basis which keeps costs low and revenues high. (Ingram, n.d.)
(B7) Propose one Functional-level strategic objective that fits the Company and situation.
Functional level strategic objective are "Functional business strategies thatcan help smaller businesses to evaluate the effects of plans and goals specific to the industry they operate within." This business strategy is often used by small businesses such as Harlow 's to help focus on and manage the business 's constituents parts. By developing individual goals and objectives for the company helps with specific functions in the company, so that the owners and managers can assign the right people and resources to the right tasks.
This is extremely important Harlow 's and how they continually want to maintain and increase customer satisfaction and loyalty.
Currently Harlow does not track satisfaction and loyalty outside of monitoring and maintaining its client base. In order to accomplish this task with regard to customer loyalty Harlow 's plans on issuing referral credits and loyalty discounts to any new business that has been referred and for those clients that have been with them for extended periods of time. The start date of this program will be October 1, 2015 and the kickoff will include one free week of care for each referral that goes to start. Depending on the type of care the client requires this can be a $500 value. This program can incentivize customers and their families to refer business to Harlow 's. Notices will be sent out to the customers and their families in August 2015 advising of the program. The initial goal will start at 25% of the existing client base would be able to provide a referral that can go to start of care. Harlow 's also intends to start sending short customer satisfaction surveys to the families and fiduciaries as well is the customers to assist in monitoring the overall performance of Harlow staff and the company
itself.
Harlow 's has recently upgraded its software system that is used for scheduling payroll client logs and care plans however in addition to these services the software helps set reminders for birthdays anniversaries and important dates to the clients and their families which allows Harlow 's to maintain a more personal touch to their business. This type of stay in touch software allows reports to be printed and faxed or emailed to care staff allowing them to maintain excellent client service. (Bradley, n.d.)
(C1) Explain how each of the following 10 principal managerial components can be used in the strategy execution process.
Building the organizational capabilities required for successful strategy execution means hiring a Staff for the organization with managers & employees capable of executing the strategy well. This aspect is crucial, Harlow 's will ensure that they have managers as well as employees with diverse skill sets. This allows for the creation of a team that is more than capable of executing the company strategy incorporation of diverse skill sets enables those individuals to bring valuable asset to the company. It will be important for the management team and competently trained team members to be at the forefront to execute the strategy properly.
Institute policies and procedures which facilitate strategy execution.
Harlows will continue to review current policies and protocols to ensure that there are minimal, to no ambiguous policies as well as provide clear communication and guidance that control procedures. The care staff needs a clear direction which allows them to act within the set boundaries and parameters they are given and held accountable for.
Adopt best practices in business processes that drive continuous strategy execution activities. Harlows will continue to invest in training and continuing education for the care staff on a monthly basis to ensure they meet California State requirements to ensure they meet and maintain their current licenses. As well as maintaining strict internal code of conduct to ensure that employees are complying with environmental health and safety standards such as OSHA regulations and HIPPA laws.
Allocate a sufficient budget towards resources toward strategy execution.
Harlow 's will continue to invest in employee development through continuing education and training assisting lower-level associates such as certified home health Associates and certified nurses assistants towards their goals to elevate their position be it a CHHA becoming a CNA or a CNA becoming a licensed vocational nurse or LVN. This investment in their employees by helping them grow and excel helps Harlow 's retain staff and strengthen their current position through education and loyalty. This program of employee investment also helps minimize lower performers and helps them promote from within. Having a staff that continues to grow educationally also gives Harlow 's a leg up in executing their strategy as well is grow the business.
Install information and operating systems that enable the company personnel to carry out their strategic roles proficiently with regards to technology and in-home care as aforementioned the software programs allow management staff to match caregiver to client based upon need it also allows comprehensive documentation to be reviewed and notated for each client and lastly allows schedules to be met through unavailability of caregiving staff matched up with clients needing assistance.
Tie rewards and incentives directly towards the achievement of strategic and financial targets. Harlow 's has developed an incentive and rewards program for their staff that is directly tied towards the achievement of both financial and strategic goals the company has set forth.
Instill a corporate culture that promotes good strategy execution.
Harlows continues to encourage and foster a culture organizationally that is positive and that also empowers its team members as well as encourages them to contribute towards the companys decisions. Through this culture it creates unity, partnership and plain old teamwork through hard work.
Exercise strong leadership needed to propel strategy implementation.
Managements job is to consistently manage daily operations and closely monitor staffing in client needs. They will maintain the daily review of care plans by client "drop in 's" and "check-in" calls with caregivers. This reassures that caregivers will execute client care plan strategies as well as achieve operating excellence daily. Overall expectations are that corrective actions will occur on an as needed basis to maintain and achieve strategy execution and performance results. Which insures that all of the company 's efforts match with Harlow 's overall mission.
Harlow 's as a company along with its strategy will continue to evolve as regulations and laws also evolve towards the betterment of its industry. As clients expectations and needs change so will Harlow 's strategy if need be. Harlow 's will continue all its efforts and activities to stay in line with their customers needs and its overall mission as a company. (Houghton&Mifflin&Harcourt, n.d,)
(C2) Illustrate the actions you would take to closely align the entire company 's effort to the company 's mission.
Mission Statement
The mission of Harlow’s Help At Home, Inc. is with high ethical standards, principles and heart, a commitment to provide clients with the best in-home care possible. We believe that our patients deserve compassionate, honest, and reliable care from only the top home care professionals, who go the extra mile to provide it.
Harlows intends on creating and maintaing an enviornment of high ethical standards and compassion. The Caregivers will continue to keep up with all Federal and State mandated trainngs as well as additional eduational courses that will assist them in dealing for the special needs of the cl;ients and their families. This Atmosphere along with allowing the feed back from the staff to assist in goal setting and action plans for the company and clients. It will be mangements job to keep the staff engaged and accountable for all training and continuing education that will be required and recommended in order to meet goals and Harlows Standards of Care.
Training: This is extreamly important in the current climate of the industry today. As we care for our families today the emphasis has been on abuse awareness for children and Seniors. Harlows goal is to maintain high levels of competence to be aware not only of the Laws and Regulations but also the physical and mental sides of these issues to make sure we can give proper care to our clients.
Technology: As the climate changes so do the tools used to assist in our businesses, even in an industry of “personal care” Technology plays a big part. Harlows will continue to grow as the industry does using the most recent software programs to keep up with the requirements of care fior the Seniors. These softwares help keep accurate careplan notes on the clients to help reasses their needs as they change and also assure the families that proper care is being given to their loved ones.
(C3) Analyze how you could apply two theories of motivation that are proven to help individuals and teams achieve objectives.
There are many motivational theories to consider and that can factor into success of individuals and teams, one of which that I feel would apply for Harlow 's would be Herzburgs motivational theory also known as the two factor theory. The theory has two aspects that affect motivation in the workplace.One of which is considered the hygiene factor which includes items such as salary, working conditions, organizational policy, and quality of supervision to name a few. These aspects don 't necessarily motivate an employee or team however the dissatisfaction that they bring or cause can impact an employee 's or teams performance. The second factor of the theory are satisfiers or motivators; these include responsibility, growth opportunity, achievement and feelings of recognition. These are the keys to motivation and satisfaction for a team and individual. When management looks into these factors and make those improvements these are the type of things that lead to teams excelling in performance and being satisfied.
By making sure the team is engaged as well is inspired keeps them pressing forward as well as those motivators such as continuing education and advancement giving them growth opportunity as well is the feelings of achievement by simply providing the opportunities for growth within the organization and giving them a variety of experience and exposure to additional knowledge.
Another strategy that may also apply would be "goal setting theory". With Harlow 's overall view in continuing education and hiring from within someone starting as a CHHA that would happen overall desire to one day become a registered nurse or an RN. Could see the opportunity of being part of the Harlow 's team as a positive thing to assist them at achieving their goal of becoming a successful RN. (‘Motivation Theories: Individual Needs’, n.d.)
(C4) Discuss organizational considerations for structuring the work effort to successfully execute your strategic plan.
There are five key organizational considerations:
1. Financial; Harlow 's strives to be a trendsetter and leader in offering quality care, services and pricing in its marketplace for the type of client care they provide. Harlows will continue to shop their competition to consistently offer their services at the strongest pricepoint in its marketplace.
2. Client focus, Harlow 's will continue to provide quality care through a fully competent and a trained caregiving staff. Harlows will continue stay in complience and update care staff trainings within 30 days of any compliance changes to reassure that their staff stays complient with regulations and is able to offer top flight services at superior pricing.
3. Increasing employee performance by enforcing strong ethical codes of behavior and conduct that comply with all safety, environmental and health standards for the clients and caregivers benefits. This also reassures that Harlows continues to offer Superior Services and makes sure that client care is of the optimum importance.
4. Continue to invest in training and continuing education for their Care Staff to maintain associate growth towards their carreer goals. These advancements will help Harlow 's maintain a highly qualified staff that can assist towards Harlow 's desire to expand the company beyond their current status as a Mom and Pop towards a Regional Company.
5. Encourage the positive culture of the organization by empowering its employees. This empowers the employees and this also helps gives them pride in theirselves, their accomplishments and also inspires them to continue to grow. This empowerment towards growth also creates a loyalty for Harlow 's which in turn encourages the care staff to contribute to the companies decisions and strategic goals. (Ingram, n.d.)
(C5) Discuss current and emerging organizational characteristics that may contribute to successful execution of your strategic plan.
Harlow 's wants to work in a collaborative environment where management is working towards making everything a team effort. Since the current climate is ever-changing based upon laws and regulations that can change annually. Having the ability to be flexible and having adaptability are also very key. With this said Harlow’s has been working on explaining changes ahead of time and detailing why these changes are going to be made in advance so that the Culture of teamwork can only be fostered and also create a partnership relationship with its Care Staff and the unity that is needed to achieve the company’s goals as well.
Management is also currently giving their employees the ability to contribute towards the decision-making process which is key to having an empowered workforce and also gives Harlow 's the ability to streamline processes whenever possible by keep their employees aware of the benefits. Having an empowered workforce is huge when a company needs to ensure that their employees can adapt quickly to any changes that can come about based upon any new legislation when they assist in the decision-making process.
Communication in any organization is of the utmost importance, so in creating an organizational culture that is comprised of employees that have different backgrounds it’s important to find a common ground that can create and foster a relationship of togetherness. This can create somewhat of a family focus of the pursuit of a unified goal. The organizational culture defines what 's expected therefore causing better communication which creates less strife overall.
Having that cultural family and unity can also assist in employee motivation and create loyalty to that of the company and management. You can also create a healthy competitiveness amongst employees which can give them a sense of identity, direction and also makes them more productive when they understand their responsibilities in their existing roles. Harlow’s intends to work towards this goal by having sensitivity trainings for it’s care staff as well as a lot of team building exercises to help with this overall implementation.
(C6) Recommend an approach leaders should use to make corrective adjustments during your company 's strategy execution.
There are many ways to make corrective adjustments such as, data gathering and analysis, promoting the decisions and also how the agreed-upon decisions are.In order from management to make any needed corrective adjustments there needs to be knowledge of what is and is not working. A lot of businesses use surveys to get a feel for what 's working and not working in the eyes of both associates and clients these can work very well but are usually better when they are done anonymously so most employees can be completely candid about their thoughts and views. This is also the same process behind suggestion boxes employees can drop in comments on suggestion cards in the management can review those in order to make specific improvements.
My recommendation however in regards to in-home care would be gathering data and analyzing it. The software authority exists to monitor most aspects of the company process matching client and caregiver as well as availability and skill set. But the largest indicators are the hard numbers assessments that go to start of care, referral generation and overall growth of the client base and revenue generation these are the numbers and reports that can be reviewed accurately assess Harlow 's strategy towards growth of the business.
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