To: Alan O’Dell – Hospital Administrator
Date: 18 September 2013
Subject: Sustainable Growth Strategy
As consultants for Shouldice Hospital Limited, we see that the major problems confronting the hospital are capacity management while maintaining quality, technique being copied by other doctors and succession planning. Although the hospital has good reputation and quality service, it is not able to service customers due to lack of capacity as well as conflicts among doctors on certain issues. Our recommendation would be to concentrate on the below key issues in the short term.
ISSUES
Capacity Management: With 1200 operations in backlog and increasing, it is important that Shouldice increase its capacity to cater to the demand else it might lose its market share and its capacity to serve the patients.
Misuse of the popular Shouldice technique: Exhibit 4 provided in the article shows the way Shouldice technique is being used for advertisement. If it is wrongly used without proper training, it is possible that the technique will be blamed and there is also a chance of negative impact on patients who underwent this surgery by untrained doctors.
Succession Planning: The main asset of Shouldice hospital is its staff. There are different opinions among staff in the key issue of capacity management. This need to be resolved and the split over the issue should be stopped. A proper successor should take over the operations who see a potential growth in expansion of the hospital operations.
RECOMMENDATIONS
Expansion strategy: Shouldice should consider working on Saturdays and schedule 30 operations on Saturday. This will allow the hospital to serve more patients with no additional capital investment. It requires that 6 surgeons and supervising surgeon work extra hours. Proper change management training has to be given to employees to accept this recommendation. Also, proper staff training and procedures should