InfoLine Balanced Score Card by murplelake75

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									CREATING A BALANCED SCORE CARD
How’s Your Health and How’s Your Growth

Balanced Score Card Dashboard Analogy - Your car has a dashboard that
contains all the gauges you need to monitor the performance of the car: Your
speedometer shows how fast the car is moving; your check engine light helps
you make sure all mechanics are working properly. The gas gauge lets you know
if you have enough fuel to make it to your destination.

So what do healthcare organizations have to gauge if they are on the right road
to their destination?
Consider the following categories for a ‘Balanced’ Score Card:
Financial                                 Operational
        –The most critical area                –Measures productivity, quality
        –Indicates overall profitability,      and process that drive the
        cash flow and ability to meet          organizational costs
        budget

Service                                  Culture
      –Should address the customers            –Measures ability to attract and
      satisfaction with the outcome            maintain quality staff and
      and experience                           customers, grow business and
      –Indicates the success in                increase revenue
      providing patient care                   –Physician and employee loyalty
                                               are early signals and predictors
                                               of changes in volume and
                                               financial health of the
                                               organization


WARNING LIGHT:
Most health systems recommend that 2/3 of all indicators should focus on
financial and operational performance (Source: Health Care Advisory Board)
A narrow focus on only one category of measure can leave an organization
vulnerable to a crisis
     Blake Health System
       –Focused closely on financial metrics and achieved results
       –Didn’t track employee satisfaction
       –Lost 182 employees
–Volumes plummeted; Profits followed (Source: Health Care Advisory
Balanced Scorecard         Simplified
Borrowed from Holland & Davis Inc., Change Management Toolkit
Purpose: To ensure we have a comprehensive view, in the form of measures, of our business.

   Financial: How do we look to our investors?
   Customer: How do customers see us?
   Internal: What must we excel at?
   Growth: How do we learn, improve and create more value?

Examples:

Financial: How do we look to our investors?
                     Goal                                             Measure
Investment of Choice                              Cash Flow
                                                  NOP, ROI, ROCE
                                                  Reliability (performance to plan)
                                                  Sales growth/backlog
                                                  Revenue growth/backlog
                                                  Market Share
                                                  Revenue per employee
                              Customer: How do customers see us?
                        Goal                                          Measure
Best responsiveness                              On-time flexibility ratings
Customer focused                                 Satisfaction ranking surveys
                                                 On site representation
Lowest transaction cost                          Our price lower than competitors
                                                  # customers with which we use EDI
                                                  # customers where our product go directly
                                                      to their production process
                                Internal: What must we excel at?
                        Goal                                          Measure
Perfect quality over life cycle                  Hours w potential customers, #RFQs, Bid win
                                                 rate
                                                 Program performance
                                                  Overall schedule
                                                  Reduction of cost drivers (# parts,
                                                      batches, setups, defects errors, turnover,
                                                      productivity, employee satisfaction)
                 Growth: How do we learn, improve and create more value?
                        Goal                                          Measure
Shortest cycle time                               Improvement in cycle times
Supplier of choice                                # new contracts, # major customers, %
                                                      revenue from relationships
Risk sharing                                      $ at risk, % successful agreements, %
                                                      supplies from long-term agreements
Skilled and motivated                             # certified skills per employee
                                                  # employee suggestions and
                                                      implementation rate
                                                  Empowerment/leadership (survey)
OUTPATIENT PHARMACY BALANCED SCORE CARD


Financial                             Operational

Revenue to Cost Ratio:                Productivity:
Known Collectable $$/Operating Cost   Scripts per Pharmacist hour
Trended monthly                       Scripts per Tech hour
                                      Trended monthly

Service                               Culture

Average Wait Time:                    Employee Perception:
R10, R2 and Combined                  Work Environment Scale
Arrived to Cashiered cycle time       Annual Comparison
Trended monthly

Customer Satisfaction:                MDACC Satisfaction Survey Results
% Patients “5” Very Impressed with
Interactions and with Overall Wait.
Measured Quarterly
BALANCED SCORE CARD
How’s Your Health and How’s Your Growth


              Culture                     Service




            Operational                   Financial

								
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