Healthcare Process Improvement Overview of The Balanced Scorecard

Healthcare Process Improvement: Overview of The Balanced Scorecard ISE 468 ETM 568 Spring 2015 Dr. Joan Burtner Associate Professor, Department of Industrial Engineering and Industrial Management

Balanced Scorecard l l Developed by Robert Kaplan and David Norton in the early 1990 s Definition: A tool that translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system Source: Kaplan, R. and Norton, D. The Balanced Scorecard. (1996) Boston: Harvard Business School Press. Spring 2015 ISE 468 ETM 568 Dr. Burtner Slide 2

Balanced Scorecard Benefits l l Concept: An organization’s strategies and their execution are important factors in performance improvement Potential benefits Ø Ø Ø Increased financial returns A more market-oriented, customer-focused strategy Greater alignment between employees and company goals Improved collaboration Strong focus on strategy Accountability for performance at all levels of the organization Spring 2015 ISE 468 ETM 568 Dr. Burtner Slide 3

Links Strategy and Performance in 4 Areas Learning and Growth Perspective Internal Process Perspective Customer Perspective Financial Perspective Spring 2015 ISE 468 ETM 568 Dr. Burtner Slide 4

Typical Graphic of Concept Source: http: //www. institute. nhs. uk/quality_and_service_improvement_tools/quality_ and_service_improvement_tools/balanced_scorecard. html Accessed Oct. 18, 2009 Spring 2015 ISE 468 ETM 568 Dr. Burtner Slide 5

Typical Measures in Healthcare l Source: http: //www. activestrategy. com/strategy_execution/example_balanced_scorecards. aspx Accessed Oct. 18, 2009 Spring 2015 ISE 468 ETM 568 Dr. Burtner Slide 6