MHA FPX 5012 Asessment 3 Financial Leadership

Student Name

Capella University

MHA-FPX 5012 Organizational Leadership and Governance

Prof. Name

Date

Assessment and Leadership Skills Plan

Hello everyone, I am __, and today I will present my leadership plan aimed at enhancing the financial strategy and condition of our organization. This report will analyze the current financial leadership scenario and propose strategies to address financial gaps within our healthcare organization. Financial management in healthcare organizations poses significant challenges, requiring adept leadership to navigate. Leaders play a pivotal role in managing and planning the financial resources of hospitals, influencing organizational priorities and goals.

In the context of the Home Health Agency, financial objectives exert a substantial influence on leadership decisions. The hospital must establish internal benchmarks concerning available financial resources and strive to maintain a balanced fiscal framework within the organization. Drawing upon previous analyses such as PEST and SWOT assessments of the hospital, this report will identify two critical financial targets for the nursing department to facilitate performance management and enhancement.

Financial Targets and Performance Indicators and Measurements

The objective of the organization is to assess financial leadership strategies using insights gleaned from SWOT and PEST analyses. According to Cabral and Oram (2019), healthcare finance key performance indicators (KPIs) encompass financial and quantitative metrics essential for effective financial planning and goal setting within hospitals (Beitz, 2019). The nursing department must first enable financial leaders to identify service lines or revenue-generating areas. By observing these areas, operational and financial enhancements become feasible. Key Performance Indicators (KPIs) are instrumental in assessing the effectiveness of financial activities within the nursing department. The organization utilizes KPIs derived from national frameworks.

Strategic financial planning serves as the linchpin for ensuring budget allocations and long-term financial success for the hospital. The recommended steps include formulating a comprehensive mission and vision statement, aligning nursing department plans with the organization’s mission and vision, assessing the external environment for new opportunities, and developing a robust plan congruent with the capital budget (Cabral, 2019). These goals necessitate an evaluation of the organization’s financial performance, comparing current performance with historical data to develop financial projections. This comprehensive approach aids in aligning strategic goals with financial objectives, ensuring prudent financial planning (Cabral, 2019).

Gaps in Financial Targets Vs Performance or Goal Attainment

Discrepancies between year-to-date financial performance and predetermined goals highlight areas requiring attention. For instance, the provision of computers and tablets to nurses stands at only 55%, significantly below the target of 80%. The goal of mentoring newly hired nurses for 60 days extends to 90 days due to sluggish performance and inadequate focus on training and learning enhancement. Additionally, major expenses exceed projections, and underinvestment in leadership training further exacerbates the gap between targets and actual performance. Bridging these gaps requires proactive measures such as controlling operating expenses and optimizing staffing to achieve financial goals effectively.

Leadership Plan for Closing the Identified Gaps for the Department

Addressing leadership gaps is imperative for organizational success, as highlighted by self-assessment conducted during previous analyses. A crucial gap identified is the lack of motivation among nursing leaders to engage in leadership education and training programs. Strong leadership qualities among nursing managers are vital for maintaining optimal hospital financial performance (Lerman, 2018). Leadership planning aims to enhance leadership skills among nurses and executives, fostering a culture of collaboration and efficient issue resolution (Pedersen, 2018). Mandatory leadership training will enhance adaptability and aid in achieving organizational objectives.

Evidence-Based Strategies for Effective Team Leadership to Achieve Financial Goals

Understanding organizational culture and strategic direction is pivotal for improving leadership effectiveness and achieving financial objectives. Initiatives such as upgrading lighting systems to reduce maintenance costs and implementing team-based rewards foster a conducive environment for achieving financial goals (Gresh et al., 2021). Transformational leadership styles, characterized by passion, empathy, innovation, and risk-taking, prove effective in enhancing team performance and patient satisfaction, thereby improving financial outcomes (Cabral, 2019). Consistent application of nursing leadership skills facilitates budget planning, fosters teamwork, and reduces non-labor costs, ultimately aligning organizational goals with financial performance (Beitz, 2019).

References

Beitz, J. M. (2019). The perioperative succession crisis: A cross-sectional study of clinical realities and strategies for academic nursing. Nursing Economics, 37(4), 179-197.

Cabral, A., Oram, C., & Allum, S. (2019). Developing nursing leadership talent—Views from the NHS nursing leadership for south‐east England. Journal of Nursing Management, 27(1), 75-83.

MHA FPX 5012 Asessment 3 Financial Leadership

Gresh, A., LaFave, S., Thamilselvan, V., Batchelder, A., Mermer, J., Jacques, K., … & Warren, N. (2021). Service learning in public health nursing education: How COVID‐19 accelerated community‐academic partnership. Public Health Nursing, 38(2), 248-257.

Lerman, C., & Jameson, J. L. (2018). Leadership development in medicine. The New England Journal of Medicine, 378(20), 1862.

Pedersen, A., Sorensen, J., Babcock, T., Bradley, M., Donaldson, N., Donnelly, J. E., & Edgar, W. (2018). A nursing leadership immersion program: succession planning using social capital. JONA: The Journal of Nursing Administration, 48(3), 168-174.

MHA FPX 5012 Asessment 3 Financial Leadership

Waxman, K. T., & Massawa, L. J. (2018). Talking the talk: financial skills for nurse leaders. Nurse Leader, 16(2), 101-106.