Long-Term vs. Short-Term Planning and Goals

1. Introduction to Long-Term vs. Short-Term Planning and Goals

In the strategic planning process, long-term and short-term planning and goal setting serve different but complementary purposes. Both are essential for guiding an organization toward its mission and vision, but they focus on different timeframes and types of outcomes.

2. Long-Term Strategic Planning and Goal Setting

Long-term strategic planning is the process that guides an organization toward its future aspirations, typically over a span of 3 to 10 years or more. Long-term strategic planning is about setting a vision for where the organization wants to be in the future and determining the critical steps needed to reach that vision. It involves understanding broad trends, anticipating challenges, and ensuring that the organization remains adaptable to external changes while staying focused on its core mission.

key concept

For healthcare organizations, long-term strategic planning is particularly crucial. The healthcare landscape is shaped by evolving technologies, regulatory changes, demographic shifts, patient expectations, and economic factors. A well-executed long-term plan allows healthcare providers to anticipate these changes, invest in necessary innovations, and continually improve patient care and operational efficiency.

The purpose of long-term strategic planning is to ensure that an organization remains relevant, sustainable, and competitive in the future. This process includes defining the organization's long-term goals, assessing available resources, and aligning its capabilities with anticipated opportunities and risks. It also serves as a roadmap, directing decision making, resource allocation, and organizational priorities for years to come. Throughout this process, the long-term goals that are developed by leaders and managers become the main tool that guides the organization forward.

Setting long-term goals is a critical component of strategic planning in any organization, including healthcare. The purpose of long-term goals goes beyond mere growth; they are designed to align an organization's actions with its broader mission and vision, ensuring long-term success, sustainability, and relevance. Leaders and managers should make many of their decisions based on the desire to achieve long-term goals.

The key purpose of setting long-term goals in an organization is to provide clear direction and focus. Long-term goals give the organization a clear sense of purpose and direction. They help leaders and teams understand where they are headed and what they are ultimately striving for. By having a long-term vision, organizations can avoid drifting and ensure that day-to-day actions are aligned with a larger, unified objective. 

IN CONTEXT

A healthcare organization might set a long-term goal to become a regional leader in cancer treatment within 5 years. This goal provides clear direction and a shared focus for all stakeholders, from doctors to administrators.

• To drive organizational growth and innovation. Long-term goals challenge the organization to think beyond its current capacity and limitations, pushing it toward growth and innovation. By setting ambitious, long-term targets, organizations can foster a culture of continuous improvement, innovation, and adaptability.
  

A hospital may set a long-term goal to implement cutting-edge technology, such as artificial intelligence for predictive diagnostics, driving investment in new tools and research initiatives.

• Align resources and priorities. Long-term goals help to allocate resources effectively and prioritize actions. Organizations are often faced with limited resources (financial, human, and technological), and having long-term goals allows leaders to make informed decisions about where to invest time, money, and effort to achieve the greatest impact.
  

A healthcare provider might decide to invest heavily in expanding outpatient services over the next 5 years, focusing their finances and workforce training efforts to meet this long-term goal.

• Inspire and motivate employees. Clear, compelling long-term goals provide a sense of purpose and motivation for employees. When people understand how their work contributes to larger objectives, they are more likely to feel engaged and committed to the organization's success. Long-term goals can also serve as a source of organizational pride.
  

A nonprofit health organization might set a long-term goal of reducing childhood obesity in a particular community. This mission can inspire staff to go beyond their daily tasks and take ownership of their role in achieving that overarching goal.

• Ensure sustainability and adaptability. Setting long-term goals ensures that the organization is not just focused on short-term gains but also planning for sustainability and adaptability when there are future challenges. Long-term planning encourages proactive management of risks, regulatory changes, and other external factors.
  

A healthcare system might set a long-term goal of becoming carbon-neutral by 2030, prompting them to invest in renewable energy sources and sustainability practices well in advance of the deadline.

• Measure progress and evaluate success. Long-term goals provide a guideline for measuring organizational progress and success. Over time, the organization can assess whether it is on track to meet its goals and adjust its strategies if necessary.
  

A hospital system with a long-term goal of improving patient outcomes may measure progress annually by tracking improvements in patient satisfaction, readmission rates, and mortality rates.

Leaders should clearly communicate the long-term goals to the entire organization, ensuring that everyone understands the direction in which the organization is headed and why it matters. Communication should be frequent, consistent, and aligned with the organization's mission and values. Leadership can make sure that that the long-term goals are clear to all staff by holding town hall meetings, putting out newsletters, and organizing strategy sessions to keep staff informed and motivated.

3. Short-Term Strategic Planning and Goal Setting

Short-term strategic planning is a focused and practical process that deals with achieving specific goals and objectives within a relatively brief time frame, typically spanning from a few months to 1 or 2 years. Unlike long-term planning, which sets the overarching direction for an organization’s future, short-term planning zeroes in on immediate priorities, operational efficiency, and current actions that support the organization's broader strategy.

In healthcare, short-term strategic planning plays a critical role in improving patient care, enhancing operational performance, meeting regulatory requirements, and responding to evolving market dynamics. Since healthcare is a highly regulated, complex, and fast-paced environment, organizations must regularly adjust their short-term strategies to address fluctuations in demand, staffing levels, technology updates, and patient needs.

key concept

The purpose of short-term strategic planning is to ensure that an organization remains flexible, responsive, and effective in the face of current opportunities, challenges, and competitive pressures. It is about making progress toward long-term goals by tackling immediate issues and delivering results that contribute to overall success. Short-term planning helps translate the broader vision and strategy into actionable, day-to-day activities that align with the organization's mission and values. Just like in long-term planning, goal setting is very important in short-term strategic planning.

Short-term goals are necessary for short-term strategic planning. Short-term goals, typically defined as objectives that can be achieved within a few months to a year, serve as the building blocks for an organization’s long-term success. While long-term goals focus on overarching aspirations and strategic direction, short-term goals provide the actionable steps necessary to make progress toward those larger goals. Setting short-term goals is essential for ensuring that an organization remains flexible, focused, and on track to achieve its vision.

The key purpose of setting short-term goals in an organization is to provide immediate focus and direction. Short-term goals help clarify what needs to be done in the immediate future. They translate the broader vision and long-term strategy into immediate, actionable tasks. Without these short-term objectives, employees might struggle to understand their priorities and what needs to be done today, this week, or this quarter.

IN CONTEXT

If an organization’s long-term goal is to expand its market share, a short-term goal might be to increase sales by 5% in the next quarter through targeted marketing campaigns and product promotions.

• Drive accountability and motivation. Short-term goals are essential for driving accountability across the organization. They break down larger goals into smaller, achievable steps that employees can take ownership of. By achieving short-term goals, employees experience a sense of accomplishment and are motivated to keep working toward the next objective.
  

A hospital might set a short-term goal to reduce patient wait times by 10% in the next 6 months. Staff will know exactly what they need to do and feel a sense of achievement when they meet that target.

• Improve operational efficiency and performance. Short-term goals can help improve the day-to-day operations of an organization. They can be set to address current inefficiencies, streamline processes, or meet urgent needs. This helps ensure that the organization runs smoothly while progressing toward larger goals.
  

A healthcare equipment manufacturing company may set a short-term goal to reduce downtime on production lines by improving equipment maintenance procedures, ensuring higher productivity in the next quarter.

• Support long-term goals. Short-term goals serve as milestones that collectively lead to the achievement of long-term objectives. They act as stepping stones that keep an organization on course, breaking down complex, multi-year strategies into manageable phases.
  

A long-term goal for a healthcare system might be to implement a hospital-wide electronic health record (EHR) system within 5 years. A short-term goal could be to complete the EHR training for 30% of the staff within the first year.

• Adapt to changing circumstances. Short-term goals allow an organization to react to immediate challenges and opportunities. Whether dealing with market fluctuations, new competitors, or unforeseen crises (e.g., a public health emergency), short-term goals give leaders the flexibility to adapt quickly and adjust priorities in response to real-time developments.
  

A hospital facing a sudden surge in patients due to a flu outbreak might set a short-term goal to increase staffing levels and streamline emergency care protocols over the next 2 months.

• Enhance communication and coordination. Setting short-term goals promotes clear communication across teams, departments, and leadership. It ensures that everyone is aligned and working toward the same objectives while also making it easier to track progress and identify any roadblocks.
  

A large urban healthcare organization may set a short-term goal to launch a new marketing campaign in the next quarter. This requires coordination across multiple departments, such as marketing, sales, and customer service, ensuring that everyone is working together toward a common goal.

• Enhance problem solving and innovation. Short-term goals often arise from the need to solve a specific problem or capitalize on an immediate opportunity. Setting these goals encourages teams to think creatively and develop innovative solutions that can address current pain points or challenges.
  

A hospital may set a short-term goal to resolve a critical bug affecting user experience with the patient portal within 2 weeks, prompting a focused and innovative approach to problem solving.

• Measure and celebrate progress. Short-term goals provide measurable targets that allow leaders and teams to track progress and assess performance in real time. By achieving these goals, organizations can celebrate successes, boost morale, and maintain momentum toward larger objectives.
  

A nonprofit might set a short-term goal to raise $50,000 in the next 3 months for a new community health initiative. Achieving this goal can be celebrated as a key milestone that motivates further fundraising efforts.

• Ensure resource optimization. Short-term goals are often linked to specific resource allocation, ensuring that the organization is using its resources (e.g., time, talent, money) as efficiently as possible. This helps avoid waste and maximizes the effectiveness of the organization’s efforts in achieving immediate priorities.

A healthcare organization may set a short-term goal to reduce supply chain inefficiencies by negotiating better prices with suppliers within the next quarter. This can free up resources for other initiatives.

4. Writing Goals

big idea

Writing effective goals is a critical step, and goal writing is a skill that leaders must develop. Writing goals involves an organized approach that ensures clarity, feasibility, and alignment with the organization's mission and vision. Both long-term and short-term goals should be directly aligned with those elements.

Leaders should involve key stakeholders (executive teams, department heads, frontline staff, and even patients or customers) in the process of goal setting. This ensures that the goals are aligned with the needs of all those affected and increases buy-in across the organization. This can be done through workshops, strategy meetings, retreats, or surveys to collect input from key stakeholders, ensuring their perspectives are integrated into the goal-setting process. Remember: When staff are involved in decision making and are asked for input, they will have more buy-in, feel valued, and have less resistance to change.

EXAMPLE

Before setting long-term goals for patient care improvements, a leader might consult with clinical staff, patients, and administrators to understand their priorities.

One popular method for writing goals is to use SMART goal criteria. SMART is an acronym for:

• Specific: The goal should be clear and easy to understand.
• Measurable: The goal should have measurable criteria to track progress and success.
• Achievable: The goal should be realistic and feasible given the organization’s resources.
• Relevant: The goal should align with the organization's mission, vision, and strategic priorities.
• Time-bound: The goal should have a defined timeline for completion (usually 3–10 years for long-term goals).

EXAMPLE

DON’T: Increase patient satisfaction.

DO: Increase the number of positive patient satisfaction surveys by 50%.

In the second example, the goal statement tells us exactly what should be changed and by how much. The 50% expectation in the goal makes it measurable. This way, if the positive surveys increase by 38%, it is easy to see that the goal wasn’t met, but if they increase by 62%, it is easy to see that it was.

In addition, starting goals with an action verb is essential because it helps clarify the objective, making it more focused, actionable, and measurable. When goals begin with an action verb, they specify what needs to be done, who will do it, and often, the desired outcome. This approach is particularly effective for goal-setting frameworks like SMART goals. It helps to ensure that the goals are clear, concise, and actionable. This long-term and short-term planning and goal writing is essential for guiding an organization toward its mission and vision.

EXAMPLE

DON’T: Staff development on technology will be important.

DO: Develop and train 50% of nursing staff on new technology by Q3.

“Develop and train” are action verbs, and “50%” makes the goal statement measurable. “By Q3” makes the goal statement time-bound.

EXAMPLE

DON’T: Become a leader in digital health.

DO: Become a leader in digital health by 2030 by implementing a comprehensive telemedicine platform, expanding access to care in rural areas, and achieving a 90% patient satisfaction rate for telemedicine services.

try it

Revise this goal statement so it is measurable, time-bound, and formatted in the best way to reflect what you just learned about goal writing.

Goal: Office staff should make sure every patient knows how to access the patient portal.