Mayo Clinic Organizational Analysis

Mayo Clinic Organizational Analysis

The internal and external environment impacts an organization’s operations and success. The internal environment includes the organization’s strengths, weaknesses, opportunities, and threats. Conversely, the external environment includes political, environmental, legal, social, technological, and environmental factors. Mayo Clinic is a leading healthcare organization with a worldwide competitive advantage in the healthcare sector. The organization has also maintained a good image, thus acquiring a large customer base in various countries worldwide. This report reviews Mayo Clinic’s internal environments based on the organization’s SWOT analysis. The report also identifies gaps in the organization’s leadership that should be filled to improve its performance and recommendations on leadership improvement areas.

Part 1: Environmental Assessment (SWOT Analysis)

Mayo Clinic’s operations are impacted by various strengths, weaknesses, opportunities, and threats. The main strengths are good brand image and reputation, research and innovation, and a good business approach. Mayo Clinic offers high-quality care at an affordable price, thus abiding by the provisions of the Patient Protection and Affordable Care Act. For example, Mayo Clinic ensures that it uses current technology to innovate medical delivery methods that lower the overall cost of healthcare (Mayo Foundation for Medical Education and Research, 2022). The organization also has a dedicated research team that explores various diseases and medical conditions and the most effective treatment. Mayo Clinic also promotes collaboration among medical professionals and doctors with expertise in various areas, thus promoting innovation. The organization’s main weaknesses are controversies and high operating costs. Mayo Clinic has faced various controversies because of patient complaints.

According to Mayo Clinic (2023a), the organization incurs a lot of cost in paying its experienced and highly trained doctors and medical professionals and acquiring the resources required for medical research. High operating costs forces Mayo Clinic to set high prices for its services, thus reducing competitiveness. Mayo Clinic’s main opportunities are expanding into different countries, adopting the latest technology, and partnering with other healthcare institutions. The organization also faces various threats that could impact its growth, such as stiff competition, changes in healthcare policies, and new demands from doctors and medical professionals. For example, changes in the Patient Protection and Affordable Act could impact operating costs and the cost of medical services the clinic provides (Rosenbaum, 2011). The clinic has to adapt to the changes in healthcare policies to retain its license and avoid legal issues that could negatively impact its reputation and affect how it relates with its stakeholders. Table 1 below summarizes Mayo Clinic’s strengths, weaknesses, opportunities, and threats.

Table 1

Mayo Clinic’s Strengths, Weaknesses, Opportunities, and Threats

Strengths o   Good brand image and reputation Mayo Clinic has established and maintained a good reputation and brand image by providing high-quality care. o   Research and innovation Mayo Clinic has a dedicated research team that explores various diseases and medical conditions and the most effective treatment. o   Good business approach Mayo Clinic’s business approach includes collaboration among medical professionals and doctors with expertise in various areas, thus promoting innovation.

Weaknesses o   Controversies Mayo Clinic has faced various controversies because of patient complaints. For instance, the organization was accused of admitting a patient against her will (Richert, 2019). o   High operating cost Mayo Clinic incurs a lot of cost in paying its experienced and highly trained doctors and medical professionals and acquiring the resources required for medical research.

Opportunities o   Expansion into different countries Mayo Clinic has the opportunity to expand into various countries, especially those with limited quality healthcare services, to create a competitive advantage. o   Adopting the latest technology Mayo Clinic can adopt the latest technology to offer quality healthcare services to patients and improve its medical research field. o   Partnering with other healthcare institutions Mayo Clinic can outsource its services to healthcare institutions without highly trained and experienced doctors and medical professionals to expand its reach, thus increasing its revenue and patient base.

Threats o   Stiff competition According to Seitz (2018), the healthcare industry is rapidly growing due to the rise of different sources of healthcare services, such as healthcare systems, clinics, and hospitals. Therefore, the Mayo Clinic could have a limited competitive advantage due to stiff competition. o   Changes in Healthcare policies The changes in healthcare policies could affect Mayo Clinic’s operations, profitability, and revenue. For instance, regulations on the cost of healthcare services and medical supplies could impact Mayo Clinic’s profitability and revenue, whereas regulations on patient data security could impact operations. o   New demands from doctors and medical professionals Mayo Clinic doctors and medical professionals may demand a salary increase and other benefits based on the salaries offered by competitors, thus impacting the organization’s profitability and revenue.

Part 2: Organizational Assessment

Mayo Clinic’s mission is to inspire hope and promote health through education, integrated clinical practice, and research. The organization’s vision is to transform medicine to connect and cure as the global authority for complex or serious disease care. Although the company has aligned its operations with its mission and values, various areas need improvement. For instance, the organization should focus on reducing customer complaints in business operations to create a good relationship with patients for integrated clinical practice. Reducing customer complaints will indicate that the company relates well with its customers. The second area that needs improvement is the finance area. The organization must increase its revenue and profitability to fund research and development to achieve its vision. The third area is customer relations. Mayo Clinic must increase its positive customer rating to effectively connect with the patients and improve medical research based on patient feedback. The fourth area is organizational learning and growth. According to Becker (2017), organizational learning is the process by which an organization improves its performance and success by gaining experience and applying the experience to create knowledge. The organizational learning process includes searching for knowledge, creating new knowledge, retaining the acquired knowledge, and transferring it to the organization. Mayo Clinic must focus on new medical inventions to meet its vision. Table 2 below summarizes Mayo Clinic’s organizational assessment, including the categories that should be improved, performance indicators and measurement, and target or internal benchmark.

Table 2

Mayo Clinic’s Organizational Assessment

Category	Performance Indicator & Measurement	Target or Internal Benchmark	Explanation/References
Business Operations	Reduced customer complaints	95% reduction in patient complaints within one month	Reducing customer complaints will indicate that the company relates well with its customers. According to Stauss & Seidel (2019), reducing customer complaints indicates customer satisfaction. Therefore, Mayo Clinic can monitor customer satisfaction based on the number of customer complaints.
Finance	Increase in revenue and profitability	70% increase in revenue within four months	An increase in revenue and profitability will indicate that the organization is performing well and has secured a competitive advantage over competitors in the healthcare industry.
Customer	Increase in positive customer rating	100 new positive reviews within one month	An increase in positive customer rating will indicate that the patients are satisfied with the services they get at Mayo Clinic and are willing to refer other patients looking for quality healthcare services to the organization. An increase in positive customer ratings will also enable the organization to monitor customer loyalty and predict its competitive advantage.
Organizational Learning and Growth	New medical inventions	Two medical inventions within six months	New medical inventions will indicate that the organization’s research and development sector is effective. The inventions will also help the organization grow and maintain a culture of learning and development to support future inventions.

The role of the organizational leadership with regard to shaping the strategic direction, aligning organizational values and culture, and managing change is vital in ensuring that all employees understand the need for the proposed change and their role in the change implementation process. Therefore, the leader needs good communication skills to communicate clearly about the change. According to Johannessen (2021), communication is essential in change management because it influences employees’ attitudes toward the change and their willingness to accept it. The leader also needs conflict management skills to handle the conflicts that may emerge in the change implementation process to achieve the desired organizational outcomes.

Part 3: Gap Identification

Mayo Clinic must fill specific gaps to enhance its performance. One of the gaps is in its business operations. The organization is experiencing customer complaints that could negatively impact its reputation. For example, there have been complaints about the effectiveness of the Mayo Clinic Diet plan designed to help patients lose weight. The organization must reduce customer complaints to increase customer satisfaction and improve its reputation. Addressing customer complaints will also enable the organization to improve its relationship with clients, thus getting ideas from them about improvement areas that it can consider to provide the best healthcare services. The second gap is in finance. The company must focus on increasing its revenue to get more funds for medical research to meet its vision of transforming medicine to connect and cure as the global authority in caring for complex or serious diseases. The organization can use medical research to introduce medical inventions that enable it to stand out in the healthcare industry, thus maintaining its top position in the healthcare industry. Notably, an article by Theimer (2022), through Mayo Clinic News Network, notes that Mayo Clinic is ranked position one among the best hospitals in the world. Therefore, the organization must remain consistent in medical inventions and research to continue offering the best healthcare services and maintain a competitive advantage over other major healthcare providers such as Cleveland Clinic.

The third gap that Mayo Clinic should fill is in customer relations. The clinic must increase positive customer ratings to attract more customers. An increase in patients will enable the organization to increase revenue and profitability, thus promoting continuous medical research to enable the organization to achieve its vision and mission. The fourth gap is organizational learning and growth. Mayo Clinic has limited research in pediatric healthcare because it mainly focuses on infections and diseases affecting many people, mostly adults in different countries. For example, the organization researches the potential treatments for memory disorders, cancer, and other diseases in minority populations (Mayo Clinic, 2023b). No specific research department is in charge of medical research in pediatric care, thus limiting the medical inventions related to pediatric research. The clinic is also reluctant to conduct clinical trials on children to determine the effectiveness and safety of the new medical interventions. Therefore, the organization needs to expand its research into pediatric research and collaborate with other authorized healthcare facilities to conduct clinical trials to meet its vision and improve the quality of care provided to pediatric patients. Table 3 below summarizes the gaps that Mayo Clinic should fill, performance indicators and measurements, and target or internal benchmarks.

Table 3

Mayo Clinic’s Gap Analysis

Category	Performance Indicator & Measurement	Target or Internal Benchmark	Identify the Variance or Gap
Business Operations	Reduced patient complaints	95% reduction in patient complaints within one month	Mayo Clinic has faced various controversies related to patient complaints when the patient’s needs are unmet according to their expectations. For example, the organization was at the center of a major medical controversy for being accused of medical kidnapping.
Finance	Increase in revenue and profitability	70% increase in revenue within one month	High operating costs and stiff competition impact Mayo Clinic’s profitability and revenue. The organization competes for patients with other healthcare facilities such as clinics, hospitals, and healthcare systems that may offer high-quality healthcare at affordable prices.
Customer	Increase in positive customer rating	100 new positive reviews within one month	Mayo Clinic has demonstrated instances where it could not maintain proper relations with the patients. For instance, in the incident where the clinic was accused of kidnapping a patient, the clinic had not effectively communicated with the patient to explain the need for her to be admitted and convince her to accept the clinic’s decision.
Organizational Learning and Growth	New medical inventions	Two medical inventions within six months	Limited research in pediatric healthcare.

The role of the leader in the gap identification stage is to identify the knowledge and competencies that employees need to meet the organization’s needs based on its strategic direction. One of the competencies required in this stage is problem-solving skills to address the problems that may cause resistance to change. The leader also needs empathy to understand how the change impacts employees and design effective measures to minimize negative impact. According to Awamleh (2022), meeting employee needs in the change implementation process is essential in preventing resistance to change. Therefore, leaders need to consider the impact of the change on employees and take adequate measures to ensure that every employee is comfortable.

 Part 4: Leadership Recommendation

Mayo Clinic can close the gaps impacting its success by considering various approaches. One of them is ensuring that patients sign a consent form before they are admitted to prevent instances where patients claim that they were admitted against their will. The main benefit of this recommendation is that it will enable the organization to create trust among its clients, thus encouraging collaboration in the delivery of high-quality care. I would also recommend engaging patients in decision-making throughout the healthcare delivery process to ensure that patients are comfortable with the decisions made by the doctors and healthcare professionals relating to their treatment. The advantage of engaging patients in decision-making is that it will increase patient satisfaction. According to Krist et al. (2017) and Yedidia (2018), engaging patients also plays a vital role in improving the quality of care a healthcare facility provides. The second recommendation is regulating operating costs by automating some services to reduce the number of staff in the clinics. The main benefit of automation is that it will increase operational efficiency. According to Kaiser (2019), operating costs are influenced by the needs of staff in an organization. Automation can also free the doctors and healthcare providers in the clinics to focus on more strategic and complex tasks, thus reducing the need for overtime pay and additional staff (Luk, 2018).

Mayo Clinic can also use automation to increase efficiency in the clinic, thus reducing patient wait time to prevent the need for hiring many doctors and healthcare professionals. For example, the clinics can offer telehealth to reduce patient visits, thus reducing the number of doctors and healthcare professionals in the clinics. The third recommendation is creating a customer relations department to collect patient feedback to enable the organization to meet their needs and preferences. The customer relations department should also mediate to ensure that the organization’s and patient’s needs are met without compromising patient safety and the organization’s success. The organization should also ensure that decisions about a patient’s healthcare are only implemented when a patient is comfortable with the decision. The main benefit of this recommendation is that it will enable the organization to meet patients’ needs based on their feedback. The fourth recommendation is investing in research in pediatric healthcare by partnering with healthcare professionals and organizations that conduct research in pediatric care to access knowledge and expertise in pediatric care research, thus preventing controversies and issues that could impact its reputation. Investing in pediatric healthcare will benefit the organization by enabling it to maintain a top position in medical research and healthcare delivery.

Part 5: Leadership Implications

Leaders play a vital role in shaping an organization’s strategic direction, aligning organizational values and culture, and managing change. Leaders communicate the organization’s goals and expectations to employees to ensure they understand its strategic direction. Leaders also set an example for their followers based on the organization’s values and culture. Leaders also manage change within the organization by preventing resistance to change, ensuring that employees understand the need for change and their role in it, and motivating employees to accept change. According to Nandan (2017), the role of leaders in change management includes creating a sense of urgency, building the team in charge of change implementation and guiding them, communicating the change vision to the followers, communicating the change to get buy-in from followers, empowering employees to accept the change, and creating short-term wins.

One of the critical success competencies needed to achieve desired organizational outcomes is communication. Leaders need good communication skills to communicate the desired change outcomes and what the organization expects from employees to achieve the proposed change. Communication is also important in ensuring that employees understand the change requirements, such as the engagement of patients in healthcare delivery to improve customer relations. The second competence is delegation. The leader must delegate tasks within the change management process to achieve the desired outcome. For example, the leader may delegate tasks related to customer service to the customer relationship management department and tasks related to medical inventions to the research and development department. The third competence is conflict management. The leader must have good conflict management skills to effectively handle the conflicts that arise among employees during the change implementation process. Conflict management is also essential in preventing delays from a lack of cooperation among employees during the change management process.

In conclusion, Mayo Clinic is a leading healthcare organization in the world. The organization has maintained a competitive advantage by leveraging its strengths and opportunities, including a good brand image and reputation, research and innovation, a good business approach, adopting the latest technology, expansion into different countries, and partnering with other healthcare institutions. Various threats and weaknesses, including stiff competition, changes in healthcare policies, high operating costs, controversies, and new demands from doctors and medical professionals, impact the organization’s growth. Mayo Clinic must also fill gaps in its business operations, finance, customer relations, and organizational learning and growth. The leadership recommendations that Mayo Clinic should consider to enhance the organization’s performance include ensuring that patients sign a consent form before they are admitted to prevent instances where patients claim that they were admitted against their will, regulating operating costs by automating some services to reduce the number of staff in the clinics, creating a customer relations department to collect patient feedback to enable the organization to meet their needs and preferences and investing in research in pediatric healthcare to access knowledge and expertise in pediatric care research thus preventing controversies and issues that could impact its reputation.

References

Awamleh, F. T. (2022). Charismatic Leadership to Overcome Employee Resistance to Organisational Change Process. https://doi.org/10.21203/rs.3.rs-1389610/v1

Becker, M. C. (2017). Organizational routines and organizational learning. The Oxford Handbook of Group and Organizational Learning, 506–520. https://doi.org/10.1093/oxfordhb/9780190263362.013.4

Johannessen, J.-A. (2021). Management, control, and communication in strategic change leadership. Continuous Change and Communication in Knowledge Management, 33–54. https://doi.org/10.1108/978-1-80117-033-820211002

Kaiser, M. J. (2019). Operating cost characteristics. Decommissioning Forecasting and Operating Cost Estimation, 399–421. https://doi.org/10.1016/b978-0-12-818113-3.00019-9

Krist, A. H., Tong, S. T., Aycock, R. A., & Longo, D. R. (2017). Engaging patients in decision-making and behavior change to promote prevention. Information Services & Use, 37(2), 105–122. https://doi.org/10.3233/isu-170826

Luk, K., Ricardo. (2018). An Integral Approach in Applying Information Technology to Reduce Operating Cost and Enhance Efficiency in Hong Kong Housing Management Industry. https://doi.org/10.5353/th_b3196944

Mayo Clinic. (2023a). Medical professionals. Mayo Clinic. https://www.mayoclinic.org/medical-professionals

Mayo Clinic. (2023b). Minority Health and Wellness. Mayo Clinic. https://www.mayoclinic.org/about-mayo-clinic/minority-health-wellness/research#:~:text=Mayo%20Clinic%20researchers%20study%20potential,improved%20treatments%20for%20many%20conditions.

Mayo Foundation for Medical Education and Research. (2022, June 18). Managing your health in the age of wi-fi. Mayo Clinic. https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/telehealth/art-20044878

Nandan, S. (2017). Leadership and change management. Leadership and Change Management, 61–66. https://doi.org/10.4324/9781315591766-8

Richert, C. (2019, July 14). Mayo disputes CNN story on “medical kidnapping.” MPR News. https://www.mprnews.org/story/2018/08/15/mayo-disputes-medical-kidnapping-cnn-story

Rosenbaum, S. (2011). The Patient Protection and Affordable Care Act: Implications for Public Health Policy and Practice. Public Health Reports, 126(1), 130–135. https://doi.org/10.1177/003335491112600118

Seitz, C. (2018). Healthcare systems and competition: Challenges and boundaries for the application of competition law in the EU Healthcare Sector. The Roles of Innovation in Competition Law Analysis. https://doi.org/10.4337/9781788972444.00015

Stauss, B., & Seidel, W. (2019). Organizational aspects of complaint management. Management for Professionals, 391–429. https://doi.org/10.1007/978-3-319-98705-7_15

Theimer, S. (2022, March 22). Mayo Clinic was again recognized as “World’s best hospital” in Newsweek Rankings – Mayo Clinic News Network. Mayo Clinic. https://newsnetwork.mayoclinic.org/discussion/mayo-clinic-again-recognized-as-worlds-best-hospital-in-newsweek-rankings/

Yedidia, M. J. (2018). Competencies for engaging high-needs patients in primary care. Healthcare, 6(2), 122–127. https://doi.org/10.1016/j.hjdsi.2017.06.005

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Conduct a five-part organizational analysis of a healthcare organization of your choosing. There is no page limit for this assessment; provide as much detail and information as possible directly and concisely.

Note: The assessments in this course build upon each other. Therefore, you are strongly encouraged to complete them in the order in which they are presented.

This assessment challenges you to articulate how an organization can best implement the Affordable Care Act to optimize outcomes.

Before you create and submit your deliverables, select a familiar healthcare organization to use in each assessment in this course. Choose the organization where you currently work, an organization where you have previously worked, or an organization where you might like to work in the future.

Demonstration of Proficiency

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 1: Analyze organizational vision, mission, culture, and strategy relative to the external environment. (L7.2, L9.3, 4)
  • Analyze the environmental factors, including legal and regulatory ones, that affect the success of a healthcare
  • Analyze outcomes relative to the organizational directional
  • Identify gaps in desired versus actual organizational
  • Propose evidence-based recommendations to close gaps identified in the organizational assessment.
• Competency 2: Assess personal leadership competencies relative to the organizational (L2.4, L14.4, L22.4, L19.2, L7.2, L10.5)
  • Describe the critical success leadership competencies needed to achieve organizational
• Competency 5: Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care (L6.1, L6.2, L6.3, and L6.4)
  • Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration

Instructions

Conduct an organizational analysis for your selected organization. Incorporate each of the following parts and be sure you carefully read the requirements for each.

Deliverables

Parts 1–3 of this five-part assessment will guide the recommendations you make in Part 4, and help determine what form of leadership is needed in Part 5.

• Part 1: SWOT or PEST Analysis
  • Use either the SWOT Analysis Template [DOC] or the PEST Analysis Template [DOC] to build your table.
    • You may also find this SWOT Analysis Example
  • Part 2: Brief Organizational Assessment Narrative and Organizational Scorecard
    • Use the Organizational Scorecard Template [DOC] to build your
  • Part 3: Brief Gap Analysis Narrative and Gap Analysis
    • Use the Gap Analysis Template [DOC] to build your
  • Part 4: Executive Briefing
  • Part 5: Brief Leadership Implications

Part 1: Environmental Assessment

Related Scoring Guide Criteria

• Analyze the environmental factors, including legal and regulatory ones, that affect the success of a healthcare
• Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration

Conduct a brief environmental analysis using a tool such as SWOT or PEST and summarize your findings in table format. You may choose to do both a SWOT and a PEST (or other) analysis, but you are only required to do one. Include the impact of relevant legal and regulatory factors in your analysis.

Note: You may use the SWOT Analysis Template [DOC] or PEST Analysis Template [DOC] documents to complete Part 1.

Part 2: Organizational Assessment

Related Scoring Guide Criteria

• Analyze outcomes relative to the organizational directional
• Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration

Create a table based on your internal analysis of the organization’s mission, vision, values, culture, and strategic direction. Then, write a brief narrative in which you explain the organization’s mission, vision, values, and culture, as well as the current strategic direction.

• Apply a framework such as the organizational, or balanced, scorecard to measure performance relative to the indicator if the strategy fits the external environment.
• You may use any table format you wish, but be sure you include 1–2 priority performance indicators, internal benchmarks or targets (be sure you include financial and quality targets), and the four

Note: Part 2 is comprised of your brief narrative and the organizational scorecard in table format. You may use the Organizational Scorecard Template [DOC] to complete Part 2, however, you are free to use any table format you choose.

Part 3: Gap Identification

Related Scoring Guide Criteria:

• Identify gaps in desired versus actual organizational
• Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration

Select 1–2 priority performance indicators within each of the four major categories: business operations, finance, customer satisfaction, and organizational learning and growth.

• Identify the performance measurements and internal benchmarks or targets for each of the priority performances Be sure you include financial and quality targets. Use a table similar to the organizational scorecard to identify the gaps between desired and actual performance. Be sure you integrate the strategic direction and scorecard into your gap identification.
• Conduct a gap analysis of actual to benchmark or target outcomes. Refer to and integrate the organizational strategic direction and Briefly explain any additional gaps you identified between stated organizational values and actual culture.

Note: Part 3 is comprised of your gap identification table and a brief narrative. You may use the Gap Analysis Template [DOC].

Part 4: Leadership Recommendation

Related Scoring Guide Criteria:

• Propose evidence-based recommendations to close gaps identified in the organizational
• Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration

Write an executive briefing report in which you clearly and concisely outline evidence-based recommendations to close the identified gaps and better align with organizational strategy and targets.

• Include within your recommendations the resources that will be needed, such as human, financial, technical, and so Be sure that you reference your resources to support your recommendations. Keep in mind that this is an executive briefing report; you want to be thorough while still being concise.
• Reference a minimum of five resources in this Look for professional, scholarly research articles on improving performance in healthcare organizations, how the Affordable Care Act is affecting healthcare organizations, and other related topics to use in guiding the recommendations you will make to close the gaps you have identified.

Part 5: Leadership Implications

Related Scoring Guide Criteria:

• Describe the critical success leadership competencies needed to achieve organizational
• Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration

Write a brief narrative in which you explain the role of the organization’s leader with regard to shaping strategic direction, aligning organizational values and culture, and managing change. What are the critical success competencies needed to achieve desired organizational outcomes? Cite your resources to support your statements.