Overview of NMC Healthcare
Introduction of the Chosen Company and the Background to Change
The healthcare industry of United Arab Emirates (UAE) is considered as a major industry in the company as contributes well to the development of the economy of the country. The presence of many large hospitals and healthcare institute can be seen in the healthcare industry of UAE and one of these hospitals is NMC Healthcare. Established in the year of 1974, NMC Healthcare is a leading healthcare chain UAE and the hospital is headquartered in Abu Dhabi (nmc.ae 2018). It needs to be mentioned that the hospital is listed under the London Stock Exchange. On a more specific note, it needs to be mentioned that NMC Healthcare is considered as the largest healthcare organization operating in UAE and it is also ranked among the major and leadinf fertility service providers in the globe. The organization has been able in gaining the trust of millions by providing their patients with personalized care and sincere commitment towards the wellbeing of the patients of UAE (nmc.ae 2018).
NMC Healthcare is the first healthcare organization in UAE having their name in the London Stock Exchange and it has become a major part of the premium FTSE 100 Index that is considered as the elite club for the top 100 blue-chip companies by the market cap. One major success factor of NMC Healthcare is the alignment of their strategic acquisitions with the legacy institutions that has been allowing the organization to provide quality healthcare services to their patients (nmc.ae 2018). At present, the main aim of NMC Healthcare is to use the key components of the organizations for the creation of the inter-connected, strong, well integrated and multi brand private healthcare chain in the presence of the required flexibility and scalability in order to grow and expand their business operations. In the current scenario, NMC Healthcare has 18,000 paramedical and support employees along with a team of 2000 doctors. NMC Healthcare is the owner of 135 healthcare facilities that include hospitals, long term facility care, medical centers, surgery centers, fertility clinic and others. On every year basis, NMC Healthcare does the treatment of more than 8.5 million patients in their hospitals all over the world like UAE, Saudi Arabia, Oman, Kuwait and others (nmc.ae 2018).
The policy of NMC Healthcare is provide the healthcare services to the people of all section of the society with the help of ethical medical practices so that the medical malpractices can be discouraged. At the same time, the aim of the healthcare is the exploration of the new business opportunities in the areas of UAE as well as in abroad (nmc.ae 2018). It needs to be mentioned that the healthcare has won many awards with their superior quality of services; like Gold Stevie Award in 2016, Great Place to Work in 2016 and 2017, Superbrands in 2016 and 2017, Sheikh Khalifa Excellence Award in 2016 and 2017 and Service Olympic Award (Best Social Media Esperance) in 2018. Moreover, the financial performance of the company is good in the recent years as NMC Healthcare is performing well financially (nmc.ae 2018). The following figure shows the performance highlights of NMC Healthcare for the year 2017:
Services Provided by NMC Healthcare
Figure 1: Performance Highlight in 2017
(Source: nmc.ae 2018)
Figure 2: Growth from 2014 to 2017
(Source: nmc.ae 2018)
Figure 3: Consolidated Income Statement
(Source: nmc.ae 2018)
Policy and Financial Performance of NMC Healthcare
Figure 4: Consolidated Statement of Financial Position
(Source: nmc.ae 2018)
Figure 5: Consolidated Statement of Cash Flow
(Source: nmc.ae 2018)
For the development of effective business strategies, it is required for the management of the companies to have proper insight about the current business environment of the companies. For this reason, the management of the companies is required to take into consideration both the internal as well as external business environment analysis. Two of the major tools for the analysis of the internal and external business environment analysis are SWOT analysis and PESTLE analysis. The following discussion shows both the SWOT analysis and PESTEL analysis of NMC Healthcare to understand the current situation and change:
SWOT Analysis
|
Strengths |
Weaknesses |
|
o The presence of MNC Healthcare in all the major cities and region of UAE is a major strength of the organization. o The presence of highly qualified and experienced doctors as well as supporting staffs is a major success factor of the organization. o The big brand name of NMC Healthcare distinguishes the organization from its competitors. o Quality healthcare services are considered as the major strength of NMC Healthcare (Hill, Jones, and Schilling 2014). |
o High cost of the services can be considered as a major weakness of NMC Healthcare as the quality services of NMC Healthcare comes in high cost for the patients. o The lack of trained healthcare professionals in UAE is a weakness for the organization (Eden and Ackermann 2013). |
|
Opportunities |
Threats |
|
o The introduction of new technological development is providing new opportunities to NMC Healthcare as they can improve the healthcare services with the help of these technologies (Ginter, Duncan and Swayne 2018). o The underdeveloped healthcare condition in UAE in providing the opportunity to NMC Healthcare to expand their business by providing quality healthcare services. |
o The presence of competitors in the form of large hospitals in the same region is a major threat for the business of NMC Healthcare. o The establishment of the super-specialty hospitals can be considered as another major threat for the organization (Meyer, Neck and Meeks 2017). |
PESTLE Analysis
Figure 6: PESTEL Analysis
Business Strategies of NMC Healthcare
(Source: Abdelhak, Grostick and Hanken 2014)
Political: The political as well as government regulations and rules have impact in the operations of the healthcare organizations in UAE. The taxation policy of the country has impact on the spending of the government for healthcare. For this reason, NMC Healthcare has the obligation to comply with the laws and regulations of the UAE government. The healthy trade relation of UAE with the other countries is a positive for the operation of NMC Healthcare (Rothaermel 2015).
Economic: The operation as well as the profitability of the healthcare organizations of UAE depends on different types of economic factors like inflation, unemployment, rate of interest and others. Changes in any of these aspects impact the spending ability of the people of the country. The exceptionally high GDP rate is a positive aspect for NMC Healthcare. In addition, low unemployment rate as well as the presence of FDI is major economic boosters for NMC Healthcare (Morden 2016).
Social: The inhabitants of UAE like to live comfortable life due to the presence of their well paying jobs. This particular aspects has made the people of UAE health conscious that increases the spending of the people of UAE for healthcare products and services. Hence, it can be considered as a major positive aspect for the business operations of NMC Healthcare (Shanks 2016).
Technological: The introduction of advanced technologies has brought positive changes in the treatments of the patients in the healthcare industry in UAE. For this reason, the healthcare institutes of UAE have become able in providing more quality services to the patients. Thus, technological development is a positive aspect for NMC Healthcare (Lee and Porter 2013).
Environmental: All the business organizations of UAE are required to comply with all the environmental related rules and regulations; and there is not any exception of this facet in case of NMC Healthcare. The organization is needed to comply with the relevant environment related regulation like climate change and others (Chartier 2014).
Legal: This is an important part as the business organizations of UAE are required to comply with all the legal regulations and rules like the medical healthcare rules and others.
From the above SWOT and PESTEL analysis, it can be observed that there are certain aspects or dimensions of the business of NMC Healthcare that need strategic reform (Lee and Porter 2013).
Performance Highlights of NMC Healthcare in 2017
Examine the need for change in the organization. Assess the factors that drive the need for strategic change and critically evaluate the resource implications for not responding to these changes
Change is considered as a major aspect in the business organizations as the business organizations are required to go through major changes for the development of their businesses. For this reason, it is required for the business organizations to formulate and develop effective change management strategies in order to hold the changes. There is major importance of change in the business organizations as the lack of changes in the companies can lead to the lack of competitiveness in the market. In addition, it also leads to negligence in addressing the crucial issues in the companies for the development of effective business strategies for fulfilling the needs of the customers (Free et al. 2013).
The aspect of change is equally applicable for the business operation of NMC Healthcare as it will be difficult for the healthcare institute to survive in case they do not put importance on the changes. At the same time, it needs to be mentioned that NMC Healthcare may have to face resistance from the organizational staffs and employees at the time of any change and ineffective communication can be considered as the main reason of this (Grol et al. 2013).
In the business organizations, the presence of both the driving forces and the restraining forces can be when it is related to the change in the business organizations. There is not any exception of this aspect in case of NMC Healthcare as the presence of both these forces is evident in the organizations.
Driving Forces: The main driving forces of change are shown below:
- The urge to continue the growth in the market is a major driving force.
- The commitment of the companies to provide superior quality of products as well as services is another major driving force.
- The aim of the companies to keep possessing the current market position is another major driving force of change (Ginter, Duncan and Swayne 2018).
Restraining Force: The main restraining forces of change are shown below:
- The companies can face major resistance from various stakeholders as the change management does not make the profits of the companies immediately noticeable.
- There can be impact in the human resources of the companies of change management that can lead to the termination of the employees (Doppelt 2017).
The following discussion sheds lights on the areas that will be impacted due to the effect of strategic changes in NMC Healthcare:
Requirements of the Patients: It is needed for the management of NMC Healthcare to consider the healthcare service requirements of their customers as a part of strategic change as there has been increase in the demand of the customers with the time. It will help the organization in maintaining standards and opportunities (Benn, Edwards and Williams 2014).
Presence of Competition: Major competitors of NMC Healthcare can be seen in the UAE market like American Hospital, Tawam Hospital, GMC Clinics, Sheikh Khalifa Medical City and others. In order to keep themselves in the competition, NMC Healthcare is needed to keep maintaining the quality of their services along with the development of new innovative strategies in order to get the competitive edge over its competitors.
SWOT Analysis of NMC Healthcare
Impact of Technology: As a part of the change in technology, the introduction of advanced treatment technologies has been majorly useful for enhancing the quality of services in NMC Healthcare. In this aspect, the major requirement for NMC Healthcare is the timely update of their information technology system on regular basis in order to ensure the success of their business operation (Shanks 2016).
Laws and Regulations from the Government: There is a major impact of change in the government laws and regulations on the operations of NMC Healthcare as the organization has to comply with the laws and regulations of UAE government.
Process Improvements: In order to meet the healthcare requirement of the patients, it is required for NMC Healthcare to introduce new healthcare processes for treatment in order to continue their growth in the market of UAE (Chassin and Loeb 2013).
Structural Impact: Strategic change management has connection with the structure of NMC Healthcare. It has impact on the structure of NMC Healthcare at the time to hire the new healthcare staffs for the organization or at the time to lay off the employees. Thus, this total aspect will have impact on the performance of the company.
Financial Impact: In this context, it needs to be mentioned that the financial conduction of the people of UAE has direct impact on the financial condition of NMC Healthcare.
Apart from the above-discussed aspects, there are many other aspects that can be affected with the change management strategy of NMC Healthcare. Apart from this, it would be effective in case NMC Healthcare adopt the strategy to lower down the cost of their healthcare services in order to attract more customers and to stay in the competition (Bradley 2016).
Two Change Management Models and their Relevance to the Chosen Company
The presence of various change management models can be seen that the business organizations can adopt for the development of the change management strategies. For this reason, it is required for the managements of the companies to select the change management model that is relevant to the nature of change of their business organizations. There are two specific models that have relevance to the change related situation of NMC Healthcare. They are Kotter’s 8 Step Approach and ADKAR Change Management Model. The following discussion shows the analysis of these two change management models:
Kotter’s 8 Step Model:
John Kotter is the developer of this particular theory of change management and he introduced this model in the year of 1996. The aim of this particular theory is to consider the aspects that are required for the transformation of the companies. The usefulness of this model can be seen for the managers in the development of vision and communication strategies for the management of changes in the organizations. Eight specific steps are considered as the main components of this model (Hornstein 2015).
PESTEL Analysis of NMC Healthcare
Figure 7: Kotter’s 8 Step Model
(Source: Pollack and Pollack 2015)
It can be observed that all the eight steps in the Kotter’s Model can be divided into thee phrases and they are shown below:
A.Creation of the Climate for Change
Creation of Urgency
Formation of Powerful Coalition
Creation of the Vision for Change
B.Engaging and Enabling the Organization
Communication of the Vision
Empowerment of the Actions
Creation of Quick Wins
C.Implementation and Sustainment of the Changes
Build on the Changes
Make it Stick
The following discussion shows the relevance of all of these steps with the organization change management situation of NMC Healthcare:
Creation of the Climate for Change: The first step of this model involves in the creation of the climate that is required for bringing change in the organizations.
Creation of Urgency: In this step, the main requirement of the management of NMC Healthcare is to make all the employees as well as staffs about the changes of the companies (Auguste 2013). Thus, the responsibility of the management of NMC Healthcare is choose the correct mode of communication in order to explain them about the positive side of the organizational changes that can bring improvements within the hospital.
Formation of Powerful Coalition: In this step, the responsibility of the management of NMC Healthcare is to provide encouragement to the employee staffs of the hospital so that they take the change management aspects in a serious manner. Thus, after the finalization of the strategies, the next requirement is to build team and prioritize the changes. For this reason, NMC Healthcare is needed to identify the leaders that are eager to volunteer the changes (Parker et al. 2013).
Creation of the Vision for Change: At the time of the initialization of the changes, the higher level management of NMC Healthcare is required to make the necessary ideas as well as assumptions as this will provide the change management team with the necessary direction to carry out the change management strategy (Mount and Anderson 2015). In this context, the main requirement is the development of clear vision. In NMC Healthcare, the main vision can be the increase in the safety of the patients by controlling the chances of different kinds of infection.
Engaging and Enabling the Organization
Communication of the Vision: After the development of the vision, the prime responsibility of the management of NMC Healthcare is to communicate the vision statement of organizational change with the other employees and staffs of NMC Healthcare so that the involvement of everyone in the organization can become possible. For this reason, the management of NMC Healthcare is required to arrange various sessions as well as training programs to spread the techniques as well as awareness about how to reduce the chances to spread infection so that safety of the hospital can be enhanced. Moreover, the management is needed to consider the use of different technologies as well as techniques for this purpose (Burden 2016).
Empowerment of the Actions: In this process, the requirement for the management of NMC Healthcare is the identification of the hurdles and obstacles so that the strategies can be developed to overcome them. In this step, the management is also needed to identify the employees that create resistance for the changes. Apart from this, the empowerment of the employees is required so that the required tools as well as techniques can be developed for the development of infection free environment. Some of the major techniques of this are the arrangement of random audit operations to examine whether all the required safety systems are in place or not others (Burke 2017).
Creation of Quick Wins: In order to increase the productivity of the employees as well as staffs, it is required for the management of NMC Healthcare to celebrate the short or quick wins; and thus, the companies are needed to develop strategies for celebrating the short wins. More specifically, the employees as well as other staffs of NMC Healthcare are needed to identify the moments where they have been able to maintain the required level of safety within the hospital. This is an important step in this model (Hui 2013).
Implementation and Sustainment of the Changes
Build on the Changes: This step is considered as an important part in the continuation of the change management strategy in NMC Healthcare. In this step, the change management team of NMC Healthcare is needed to make the employees as the staffs of the hospital to comply with the techniques and tools for maintaining the organizational safety so that there is not any lack in the development of innovative techniques for positive changes. Most importantly, the management of NMC Healthcare is needed to provide the employees and staffs of to provide with all the required resources for maintaining the safety aspect in the hospital (Burke 2017).
Make it Stick: In this last step, the requirement for the management of NMC Healthcare is to put emphasis on different social as well as cultural factors so that there are not any obstacles that hamper the progress in the change management aspect of the company. For this reason, the upper level management of NMC Healthcare is needed to develop crucial practices that will help the change management strategies to keep in the right place (Mount and Anderson 2015).
ADKAR Change Management Model
The presence of another major change management model can be seen that has relevance to the change management situation in NMC Healthcare; that is ADKAR Change Management Model. It can be seen that there are five major steps in this change management model; they are shown in the following figure:
Figure 8: ADKAR Change Management Model
(Source: Worley and Mohrman 2014)
Awareness: This is considered as one of the major steps in this change management model as this step involves in the identification of the areas requiring mandatory changes. It implies that the management of NMC Healthcare is needed to create an understanding about the changes in the organization. For this reason, the upper level management of NMC Healthcare needs to communicate the safety related issues with all the employees as well as staffs of the hospital so that they can understand and recognize the importance of the changes (Bareil 2013).
Desire: Along with the awareness, the management and all the employees of the companies must have the required desire to take part in the change management program of the companies. For this reason, the management of NMC Healthcare is needed to define the nature of the changes to the employees as the employees must know about the importance of positive changes within the organizations. Hence, in order to create desire among the employees as well as staffs, the management of NMC Healthcare must communicate the benefits as well as importance of maintain safety within the hospital. The responsibility to create awareness must be one of the major responsibilities of the change management team of the company (Kim 2015).
Knowledge: One of the main part of the change management process in the organizations is to provide the employees as well as staffs with the required knowledge so that they can gain understanding what to do related to the changes. For this reason, the management of NMC Healthcare must arrange various training sessions so that they can educate the employees and staffs of the employees with the detailed underatsding about the tasks, processes and system for maintaining safety within the hospital. At the same time, the management of NMC Healthcare should properly communicate with the change management team about their roles and responsibilities (Chemengich 2013).
Ability: In order to carry on the change management system on the day to day basis, the management of the companies has the responsibility to provide the employees and staffs with the required skills so that they become able in the implementing and sustaining the changes. Thus, the management of NMC Healthcare needs to ensure the day-to-day involvement of the employees and they need to provide them with the access to the necessary resources for better outcome of the strategies (Bin Taher, Krotov and Silva 2015).
Reinforcement: Reinforcement is considered as another major aspect that needs to be considered at the time of change management. Thus, in order to keep the momentum going related to change management, the management of NMC Healthcare is needed to celebrate as well as recognize the success of the employees so that the rewards as well as feedback can be acquired. Some other techniques of reinforcements are audit of the change management system, measurement of performance, systems for accountability and others. The management of NMC Healthcare must take into consideration all these aspects of reinforcement (Kim 2015).
Development of Change Management Strategy including the Stakeholders and Strategies to Overcome Resistance
Development of the change management strategies is a major aspect for the managements of the business organizations. At the time of the development of the change management strategies, it is the prime responsibility of the management of NMC Healthcare to take into consideration the interests of the major business stakeholders. Stakeholder is considered as a person having stake in the organization; thus, a stakeholder many be employee, customer or a shareholders as they have their stakes or interest involved with the companies. It needs to be mentioned that there will be a negative effect on the long-term sustainable growth of the business organizations in case the companies constantly overlook the demands and interests of the stakeholders (Carnall 2018).
This whole aspect is also applicable for the change management strategies of NMC Healthcare as the management of the hospital is needed to take into consideration the interest of these stakeholders. The following table shows the major stakeholders of NMC Healthcare:
/table>
|
Directors and Owners |
Patients |
Doctors and other medical staffs |
Employees and staffs |
Suppliers of medicines |
Suppliers of medical goods |
|
Government of UAE |
Local Government Authority |
Ministry of Health and Prevention in UAE |
Competitors hospitals |
Insurance Companies |
Medical Training Companies |
|
Media |
Local Community |
Business Community |
Environment |
Financial institutions and Banks |
Shareholders |
In this context, it needs to be mentioned that the stakeholders of NMC Healthcare can be divided into two subparts; they are Internal Stakeholders and External Stakeholders. Internal stakeholders are considered as the shareholders that has internal connection with the company; they are employees, directors, doctors, owners and others. At the same time, external stakeholders are the stakeholder that do not have any direct or internal connection with the companies as they have less power or interest in the affairs of the companies. However, the actions of the companies do have impact on the external stakeholders; they are the government, supplies and others (Hayes 2018).
After the identification of the main stakeholders, the responsibility of the management of NMC Healthcare is to develop a Power/Interest Matrix for showing the power of the stakeholders and this table is shown below:
|
Stakeholders |
Level of Power |
Level of Interest |
|
Directors and Owners |
High |
High |
|
Patients |
Low |
High |
|
Doctors and other medical staffs |
High |
High |
|
Employees and staffs |
Low |
High |
|
Suppliers of medicines |
Low |
High |
|
Suppliers of medical goods |
Low |
High |
|
Government of UAE |
High |
Low |
|
Local Government Authority |
High |
Low |
|
Ministry of Health and Prevention in UAE |
High |
High |
|
Competitors hospitals |
Low |
Low |
|
Insurance Companies |
Low |
High |
|
Medical Training |
Low |
Low |
|
Media |
Low |
High |
|
Local Communities |
Low |
High |
|
Business Communities |
Low |
High |
|
Environment |
Low |
High |
|
Financial institutions and Banks |
High |
High |
|
Shareholders |
Low |
High |
Figure 9: Power and Interest Matrix
(Source: Cabrey, Haughey and Cooke-Davies 2014)
The above table shows the identification of the major stakeholders of NMC Healthcare and their categorization has been done based on their power and interest. From the financial statements of the hospital, it can be observed that the organization has been able in registering string growth over the years. In the presence of increased completion from the competitors, it is the utmost requirement for NMC Healthcare to develop effective strategies for retaining the same level of growth. In order to gain more market share, the main recommendation will be to lower the cost and prices of their services so that people with lower income can also use the services of NMC Healthcare (Cameron and Green 2015).
It is obvious that NMC Healthcare will have to face major resistance from the employees at the time of the implementation of the strategies of change management. Following are some f the techniques that NMC Healthcare needs to adopt in chain management:
- The management of NMC Healthcare is needed to develop effective communication strategy in order to make the employees and staffs aware about the mission and vision of the change management strategy (Craig, Nevin and Odum 2014).
- At the same time, the management needs to provide education so that employees become aware of the positive side of change management and it is majorly helpful for diminishing resistance.
- The management of NMC Healthcare needs to provide the employees and staffs with rewards and recognition on their good performance in change management in order to reduce resistance (Hon, Bloom and Crant 2014).
- The management of NMC Healthcare needs to take feedbacks from the employees as well as staffs on the processes of change management in order to engage them with the change process.
- Provide all the required information related to the change management to the employees is one of the major ways for the management of NMC Healthcare to reduce resistance (Y?lmaz and K?l?ço?lu 2013).
Conclusion:
The above study involves in the discussion of different dimensions of change management in NMC Healthcare. From the above discussion, it can be seen that NMC Healthcare has been able to register growth in every aspect of business over the years. The SWOT analysis shows that high cost of services is a major weakness of the hospital. As per the PESTEL analysis, NMC Healthcare has to face major threat from different external environmental factors and this aspect brings different changes in the organization. It can be also observed that the hospital has both the driving as well as retraining forces for change management. In addition, it can also be seen that the change management strategy of NMC Healthcare will have impacts of some aspects like patient requirements, level of competition, business process, technological development and others. It will also has impact on the financial performance of the organization.
In this aspect, two change management models have maximum relevance with the change management situation of NMC Healthcare; they are Kotter’s 8 Step Model and ADKAR Change Management Model. The related discussion shows the ways in which NMC Healthcare can use these two change management models for directing the change management process within the organization. As per the above study, there are eight steps in the change management model of Kotter; at the same time, there are five steps in the ADKAR change management model. The above study indicates towards the fact that NMC Healthcare needs to take into consideration the interest of their major stakeholders at the time of the development of the change management strategy and thus, both the internal as well as external stakeholders are required to be taken into consideration. As per the above study, the development of Power/Interest Matrix will be majorly helpful for NMC Healthcare to develop the change management strategy.
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