DQ3-2

3-2 Responses

1.

Balanced scorecards and dashboards are aids that state information on how the organization is performing in certain areas. The purpose of the balanced scorecard was created to improve the information technology to aid in decision making. “Balanced score-cards, in their stripped-down version, simply state that reporting should be available on the key attributes that affect performance (Cleverley 2018).” The more information provided, the more beneficial it is for decision makers to have variables to determine the next course of action to guide their organization into innovation. Dashboard reporting is a part of balanced scorecards and is used in sectors of economy to aid overall company performance. “Assuming that many healthcare providers are interested in developing a dashboard reporting system for key executives and board members, what needs to be done? In general, four critical questions must be answered:

What is most important to the firm’s success?

What are the critical drivers that influence performance attainment?

What are the most relevant measures that reflect critical driver relationships?

What relevant benchmarking data are available to assess performance (Cleverley 2018)?”

These questions are essential to ensure the success and longevity of a company to thrive in our ever-changing world of opportunity and innovation.

Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, MA: Jones & Bartlett Learning.

2

Balanced scorecards "represents an attempt to enhance the value of information and exploit the capability of information technology to deliver actual value to decision makers" (Cleverley & Cleverley, 2018.) It makes reporting available on the attributes that somehow affect performance in a limited area; so, if it does not provide that much data, the information is irrelevant to make a final decision. On the other hand, dashboard is defined as "natural subset of balanced scorecards" (Cleverley & Cleverley, 2018.) which is frequently used to allow managers to focus on the critical areas that can influence the performance of the staff.

These tools are great because it allows managers to gather all the necessary and real data due to its simple structure. This is needed to bring up the best of companies because it promotes knowledge and better communication between leaders and employees. It helps managers to be more precise and accurate when making strategic decisions in the unit due to its cause and effect type of relationship. Additional characteristics that are important to mention is the fact that it improves performance and allows strategic communication because it supports transparency, allows an overall visualization, helps to engage easily with staff, and increases cohesion in the place where it is applied. What areas do you think will benefit the most with the use of these tools?

Thanks

Reference

Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, MA: Jones & Bartlett Learning

3

. Dashboards and scorecards are analytical tools that allow you to focus on the measurements that are important to your business. Like the dashboard in your car, a performance management dashboard is a display of various meters, gauges and lights, the dashboard is effective on managing data on an hourly, daily basis, it is current and in real time. The dashboard visually analyzes and displays key performance indicators, (KPI) The dashboard is programed to monitor the health of the business customized to the individual company. This is an excellent tool to improve financial performance because it monitors so accurately.(Cleverley & Cleverley)

Scorecards, a top down approach to performance management, on scorecards, strategic goals are compared with results. The scorecard is like a report card in that it measures results on a weekly, monthly, quarterly, or annual basis, the user can then see how their performance measures against expectations. A Balanced Scorecard depends mainly on four perspectives; financial, customers, internal processes, and learning and growth perspectives.(Cleverley & Cleverley)

Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, MA: Jones & Bartlett Learning.