So You Think You’re Strategic?

McCaughey's main role is to ensure that strategy is a part of every decision and every process. Not only does he oversee the process of taking good ideas from theory to implementation, but he also monitors their results and tweaks them as necessary. True strategy, McCaughey says, involves much more than determining what an organization wants to do and getting the resources to do it. It's about determining what both the staff and patient populations need, differentiating services or processes from others, and developing the data needed to make educated decisions.

Of course, even with a team or person dedicated to making sure strategic planning occurs continuously, CEOs must be intimately involved in the strategic process—and long-term strategy should play into even short-term decisions.

"Strategy is the job of the guy running the hospital. I want the chief strategy officer to be the guy running the show," Stuart says.

—Molly Rowe

An Idea's Life Cycle

Cleveland Clinic asks a number of questions to ensure that strategic decision-making takes place, says Chief Emerging Business Officer David Strand. When evaluating new ideas, leaders answer these questions:

Is this consistent with our mission? This is the starting point, says Strand. Does this idea or solution fit Cleveland Clinic's main mission of taking care of patients?

Does this build on a competency that we already have? Every organization has infinite opportunities for growth, but that doesn't mean leaders should pursue every one. This is especially true in healthcare, Strand says. Ideas must build on an existing core competency in order for Cleveland Clinic to pursue them.

Does this lend itself to building our reputation and our brand? "Brand dilution is something we worry a lot about," Strand says. "We are a world-class institution that delivers the highest quality medicines for the sickest people. If an idea doesn't lend itself to that reputation, we don't do it."

Is this a big enough opportunity to make it worthwhile? Cleveland Clinic leaders consider whether a new idea is going to support the capital needs of the organization and whether the idea is worth spending time and attention on, Strand says.

What are our partnership opportunities? When considering a new idea, Cleveland Clinic looks for "high-quality partnerships," Strand says, like the organization's recent partnership with Google Health to provide online personal health records to patients.