No standard operating procedure was established to lay down the degree of action anticipated from choice units or each responsible person, and also the total amount of resources that a responsible party should use in achieving that level of action. No appropriate management control systems were installed to collect, process, analyse bookkeeping (especially price-related) information and supply timely feedback to the management. As a consequence, actual prices appreciably exceeded budget. Loopholes in the system coming from free monitoring and control gave rise to serious agency problems.
To turn the situation around, WANG Shan launched an IT-led control reform. Annual earnings and profits improved substantially. Direction and operational efficiency was also significantly improved. This case is intended to demonstrate how an institutionally sophisticated organization (particularly hospitals) can beat institutional challenges as well as upgrade management with an IT-oriented strategy.
Peking University People's Hospital An IT-Led Upgrading in the New Healthcare Reform case study solution
PUBLICATION DATE: December 12, 2013 PRODUCT #: TU0052-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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