Balanced Scorecard

STRATEGY AND THE BALANCED SCORECARD Operations Management in Action The Bridgeport Hospital in Connecticut was a successful 425-bed institution staffed with more than 550 active phy-sicians. However, it was facing financial pressures and felt the use of a balanced scorecard could help them achieve their patient care and financial goals. Their vision included four perspectives: • Organizational health • Quality and process improvement • Volume and market share growth • Financial health For each of these perspectives they developed a set of initiatives that were linked and scored. Many initiatives were team based and ranged from large projects to “seven daily” commitments such as “I will introduce myself to patients 100 percent of the time,” “I will be sensi-tive to and aware of cultural diversity,” and, “I will keep patients and families informed” (BSC Designer 2018). After one year, the hospital was able to: • lower turnover rates, • exceed their volume goals in targeted areas such as cardiovascular surgery, OVERVIEW Most healthcare organizations have good strategic plans; what fre-quently fails is their execution. This chapter demonstrates how the bal-anced scorecard can be an effective tool to consistently move strategy to execution. First, we examine traditional management systems and explore their failures. Next, we review the theory behind the balanced scorecard and strategy mapping and explain the tools’ application to healthcare organizations. Practical steps to implement and maintain a balanced scorecard system are provided, and detailed examples from Vincent Valley Hospital and Health System demonstrate the application of these tools. The companion website to this book contains templates and explanatory videos that can be used for student exercises or to implement a balanced scorecard in a healthcare organization. In addi-tion, a case study on the website includes data that can be used to develop a realistic dashboard. On the web at ache.org/books/OpsManagement4 This chapter gives readers a basic understanding of balanced scorecards that enables them to • explain how a balanced scorecard can be used to move strategy to action, • explain how to monitor strategy from the four stakeholder perspectives, • identify key initiatives to achieve a strategic objective, • develop a strategy map that links relevant initiatives, • identify and measure leading and lagging indicators for each initiative, • understand the use of business intelligence tools to extract data for scorecards, and • demonstrate the connection of value purchasing metrics to strategy and execution.

The Balanced Scorecard

A balanced scorecard can help move strategy to execution successfully. In order to do this, it is important that the following elements are included:

1. Mission and vision

2. Perspectives

· Financial

· Customer

· Internal business process

· Learning and growing

3. Linking measures to strategy

4. Structure and strategy

5. Strategic alignment – top to bottom

6. Targets, resources, initiatives, and budgets

7. Feedback and the strategic learning process

The following video gives a simple explanation of the "Balanced Scorecard." You can also  read or download the video transcript

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The Balanced Scorecard can have various "looks".   There are some key metrics that need to be included in a well defined "Balanced Scorecards": 1.  Financial Metrics (Ex/Net Revenue, Expenses, Operating Margin)

2.  Patient Satisfaction (Ex/ % excellent)

3.  Human Metrics (Ex/ FTE's, Overtime, Open Positions)

4.  Operational Metrics (Ex/ LOS, Wait time, census)

5.  Clinical (Ex/ Patient Falls, CAUTI, CLABSI)

 The text provides a template for the balanced scorecard, but below is a template that I prefer.  I feel that this tells the story well, and shows you what you need to pay attention to.  If metrics are red or yellow, I want to understand why and look at the trends.  I also want to learn from the green metrics, what have they done and are there best practices.  

Source:   Lowder. (2016, October 20). Healthcare Dashboards vs. Scorecards: Use Both to Improve Outcomes. Retrieved May 14, 2020, from https://www.healthcatalyst.com/healthcare-dashboards-vs-scorecards-to-improve-outcomes