MHA-FP5014 Assessment 4 Balanced Scorecard

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:

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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 MHA-FP5014 Assessment 4 Balanced Scorecard

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

http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/
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.

Definition of the Balanced Scorecard
Using the Scorecard in the Health Care Industry
The Four Perspectives
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.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

· Competency 2: Apply a risk-management model or framework to a specific risk-management priority.

· Present recommendations on each facet of the balanced scorecard model.

· Competency 3: Analyze the process and outcomes of a care quality- or risk-management issue.

· Use balanced scorecard concepts to analyze key performance indicators and measures associated with a specific risk-management issue.

· Competency 5: Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care administration.

· Create a persuasive presentation tailored to a specific audience.

· Communicate clearly in a limited time frame.

Context

Developing awareness and skills in constructing and interpreting balanced scorecards can increase your value as an employee. There are related resources in this course that needs to be saved and updated for future use in the workplace. Read further in the Assessment 4 Context [PDF] Attached document, which contains important information about the following topics related to the balanced scorecard: MHA-FP5014 Assessment 4 Balanced Scorecard

· Definition of the Balanced Scorecard.

· Using the Scorecard in the Health Care Industry.

· The Four Perspectives.

Questions to Consider

As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as a part of your assessment.

· What is the overall purpose of using a scorecard?

· How are scorecards typically used in business?

· What positive potential do scorecards add to organizations?

· How would you frame a balanced scorecard for use in health care?

· What are the four key elements of a balanced scorecard?

· What does the term balanced scorecard mean?

· What types of limitations do scorecards have?

· How does Six Sigma differ from a balanced scorecard?

Resources

Required Resources

Balanced Scorecard

· Kaplan, R. S., & Norton, D. P. (1996). Linking the balanced scorecard to strategy. California Management Review, 39(1), 53–79. MHA-FP5014 Assessment 4 Balanced Scorecard