Assessment 4 Context

1  Context

Definition of the Balanced Scorecard The Balanced Scorecard Institute:

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

The balanced scorecard performance measurement framework considers non-financial performance measures in addition to financial metrics to provide a more balanced view of organizational performance.

Using the Scorecard in the Health Care Industry Within the health care industry, the scorecard must reflect a framework that incorporates patient safety, regulatory compliance, and a variety of other operational factors (Gunduz & Simsek, 2007). The contemporary version of the balanced scorecard transforms the organizational strategic plan into a dynamic document that provides a snapshot of performance measurement across the organization. Recall from earlier units that performance measurement is a condition of participation for some government and privately sponsored reimbursement sources.

The Four Perspectives The balanced scorecard indicates that organizations should be examined from four perspectives: learning and growth, business processes, customer satisfaction, and financial performance (Kaplan & Norton, 1992). Additionally, each perspective requires metrics for which data can be collected and analyzed (Balanced Scorecard Institute, n.d.). The analysis takes place within the context of the organizational strategic direction. When used to its full potential:

The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. (Balanced Scorecard Institute, n.d.)

Once the balanced scorecard is applied to an organization, it is important that managers effectively communicate results and take appropriate action. Applying the balanced scorecard results to key risk management areas is equally important when using the scorecard to minimize risk and develop a quality improvement strategy.

References Balanced Scorecard Institute. (n.d.). Balanced scorecard basics. Retrieved from

http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/ 55/Default.aspx

Assessment 4 Context

2 MHA-FP5014 Assessment 4 Context

Gunduz, M., & Simsek, B. (2007). A strategic safety management framework through balanced scorecard and quality function deployment. Canadian Journal of Civil Engineering, 34(5), 622–630.

Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70(1), 71–79.

Overview Assessment 4-6.docx

· Overview

Create a 5–10 minute recorded presentation, detailing the results of the balanced scorecard analysis and making recommendations for quality improvement and risk reduction. Your presentation material should be 10–12 slides in length.

Note: The assessments in this course build upon each other, so you are strongly encouraged to complete them in a sequence.

Applying the balanced scorecard to a health care organization can help managers uncover potential risks. It will also help them to fully analyze the organization from multiple perspectives. MHA-FP5014 Assessment 4 Paper.