Part 1
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Andy is a purchasing manager at a prominent hospital. His job is to ensure efficient and cost-effective acquisition, utilization, distribution, and maintenance of medical equipment and supplies throughout the organization.
Top management has challenged all departments to find ways to improve efficiencies in processes, cut costs, and provide better patient care and safety.
At the end of a staff meeting, Andy's boss, Jared, tells him and other managers in his group, "We need to think strategically about how we're going to align our group's efforts with the hospital's goals."
view textTo begin thinking strategically, what might Andy do first?
Explore all the choices.
Review his existing vendor contracts and look for ways to negotiate lower prices
Not the best choice. While examining his existing contracts and looking for ways to negotiate lower prices may help Andy lower costs, he first needs to understand the big picture of what the organization is trying to do in terms of its range of objectives. For example, pressuring vendors to agree to lower their prices may satisfy the hospital's cost-cutting mandate. But if vendors start selling him lower-quality equipment and supplies to remain profitable, this development could eventually jeopardize patient care and safety, thereby conflicting with another important strategic mandate defined by the hospital. Andy therefore needs to look broadly at what his group does, how it can best support all the objectives the hospital is trying to achieve, and what consequences his actions might have over both the short and long term.
Talk with peer managers in other departments to see how they're addressing the need to improve processes, cut costs, and improve patient care
Good choice. Strategic thinkers seek other people's opinions. By collaborating in this way, Andy gains other managers' perspectives and a more comprehensive view of how the different parts of his organization work together. He also might benefit from insights, best practices, and wisdom that others have acquired through experience. And he can more readily identify possible actions that might work at cross-purposes with others in his organization.
Call a friend who works in the purchasing department at another hospital to see what his group has done to improve processes, cut costs, and improve patient care
Good choice. Strategic thinkers constantly consider what's going on outside their organization as well as what's going on inside. That means staying abreast of customers' needs, competitor's moves, and industry trends. Calling his friend at another hospital (a potential competitor) is a smart way for Andy to learn about how other managers in his industry have dealt with challenges similar to those facing his organization. He might also consider contacting managers at organizations in different industries entirely. They may be using approaches to improving processes, cutting costs, and improving the quality of their products or services that he can adapt in his organization.
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