Cleveland Clinic: Growth Strategy 2012 Harvard Case Solution & Analysis


The internationally renowned health care services provider Cleveland Clinic had an operating income of $250 million in 2010 while in 2009 it was approximately $350 million. The fall in the operating income of 2010 as compared to that of 2009 shows that the company’s management was failed in effectively managing their operating expenses and related overheads, which had also exerted a negative impact over the net income/profit of the company. To resolvethe issue, the Cleveland Clinic hadplanned a strategic transformation to restructure the entire organization into teams in order better understand the needs of patients apart from conventional medical specialties, to grow effectively as well as to control their costs.

The company had taken certain steps which affected its operating income, operating costs and related overheads. The company continued its growth without considering its increasing costs and reducing income. It had differentiated itself through its services, innovation and patient care, however, its costs were high which could be a potential threat for them in the future. Moreover, the transforming strategy would take some time to show its effectiveness because the company would require reforming its brand image, its growth opportunities, etc. After analyzing the existing structure of the Cleveland Clinic, the management had sensed a strong need for change however, during the strategic restructuring process the management overlooked certain things. For example, the management of the Cleveland Clinic had not provided information about the culture of the organization to the staff of Canadian doctors at its executive health and wellness service. Such minor mistakes had greatly affected the revenues and profit of the organization. The Cleveland Clinic had good services and staff, but the internal alignment of the staff with strategic goals and objectives was weak. In order to resolve these problems a number of solutions are proposed as under..................

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Services at the Cleveland Clinic in the health world-renowned quality. In 2012, the strategic progress on the cost of delivery of health care is obvious many areas. Clinic making strides in integration cycles care delivery throughout Northeast Ohio. This expands the initiative was launched in 2007, which began restructuring the organization as a team is defined around the needs of patients, rather than the traditional medical specialties. "Patients in the first place!" takes shape as the team measures and report results, coordination of care and the development of processes to support better value for patients and the development of IT systems to support the measurement and coordination. In addition to the restructuring of health care in hospitals and throughout northeast Ohio, the clinic has investments, facilities and staff in a number of other U.S. states and in Canada, and Abu Dhabi. Students can learn the strategy of transformation, systems integration, geographical expansion, the implementation of new approaches measuring compliance of the strategic objectives, as well as in leading change within the company, but rather economy. "Hide
by Michael E. Porter, Elizabeth Olmsted Teisberg Source: Harvard Business School 23 pages. Publication Date: 06 February 2009. Prod. #: 709473-PDF-ENG

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