Strategy and the Balanced Scorecard by SupremeLord

VIEWS: 152 PAGES: 4

									   Companion Website to Chapter 4, “Strategy and the Balanced
      Scorecard,” from Healthcare Operations Management, authored
by Daniel B. McLaughlin and Julie M. Hays, and published by Health Administration Press, 2008


        Most healthcare organizations have good strategic plans, but the execution of

these plans frequently fails. This chapter demonstrates how organizations can use the

balanced scorecard to move strategy to execution consistently. First, it examines

traditional management systems and explores their failures. Next, it reviews the theory of

the balanced scorecard and strategy mapping and explains its application to healthcare

organizations. The chapter also provides practical steps for implementing and

maintaining a balanced scorecard system. This section of the companion website contains

templates and explanatory videos that can be used for student exercises or to implement a

balanced scorecard in an existing healthcare organization.

    This chapter gives readers a basic understanding of balanced scorecards to enable

them to:

    •   explain how to use a balanced scorecard to move strategy to action;

    •   explain how to monitor strategy from the four perspectives;

    •   identify key initiatives to achieve a strategic objective;

    •   develop a strategy map linking initiatives;

    •   identify and measure leading and lagging indicators for each initiative; and

    •   use Microsoft PowerPoint and Excel to create strategy maps and scorecards.

An extensive set of resources is available in this section of the website for students’,

instructors’, and healthcare professionals’ use.

        The author invites readers’ comments, recommended readings, website

suggestions, or any other material to be added to this webpage, for this chapter or any


                                                                                                1
other chapters. Click here to send an email. Be sure to include “Healthcare Operations

Management” in the subject line.

Resources
PowerPoint Slides for Chapter 4

A PowerPoint presentation of the key points of Chapter 4 is available here:
Chapter 4.ppt

Videos and Excel Template

A sample balanced scorecard for a healthcare organization is available on this site. It
includes a downloadable template for creating a strategy map in PowerPoint and a
downloadable sample healthcare department scorecard created in Excel.

To use these resources, review Chapter 4—Strategy and the Balanced Scorecard and then
follow the steps outlined below by clicking on each link

1. Download the sample healthcare balanced scorecard strategy map to your desktop by
clicking here and then open the file with PowerPoint and view the next video.

2. View Drawing Strategy Maps (web video). You will need to open this file with
Internet Explorer or Firefox.

3. Download the Health Care Department Balanced Scorecard to your desktop by
clicking here, and then open the file with Excel and view the next video.

4. View Using the Balanced Scorecard Excel Template (web video).

5. View Modifying the Balanced Scorecard Excel Template for Your Use (web video).
You will need to open this file with Internet Explorer or Firefox.

6. View Integrating the Strategy Map with the Balanced Scorecard (web video). You will
need to open this file with Internet Explorer or Firefox.

Websites of Interest

Balanced Scorecard Institute



Recent Refinements in the Use of the Balanced Scorecard
The author recently has worked with organizations that have refined their use of the
balanced scorecard. An important clarification has emerged from this work with regard to
the relationship between measures and initiatives.


                                                                                          2
Developing measures and a linked strategy map should be the first step in the creation of
a robust strategy map. After the map is developed, strategic initiatives may be identified
to close the gap between current and desired performance. However, not every measure
needs an initiative. In addition, a large initiative may affect many of the measures on a
strategy map. A good example of a strategic initiative is the implementation of an
electronic health record, which may have an impact on all four perspectives of the
balanced scorecard.

An organization may have many initiatives and projects concurrently underway.
However, the strategic initiatives in the balanced scorecard must take priority for the
organization to achieve its goals.

Additional Recent References and Readings
Books
Kaplan, Robert S. and David P. Norton. 2004. Strategy Maps: Converting Intangible
Assets into Tangible Outcomes. Boston: Harvard Business School Press.

Kaplan, Robert S. and David P. Norton. 2006. Alignment: Using the Balanced Scorecard
to Create Corporate Synergies. Boston: Harvard Business School Press.

Articles
Fosdick, Glenn A. and Mary Ellen Uphoff. 2007. “Adopting Cross-Industry Best
Practices for Measurable Results.” Healthcare Executive 22 (3): 14–20.

Goodspeed S. W. 2006. “Metrics Help Rural Hospitals Achieve World-Class
Performance.” Journal of Healthcare Quality 28 (5): 28–32, 55.

Kocakülâh, Mehmet C. and David Austill. 2007. “A. Balanced Scorecard Application in
the Health Care Industry: A Case Study.” Journal of Health Care Finance 34 (1): 72–99.

Park, E. J. and D. L. Huber. 2007. “Balanced Scorecards for Performance Management.”
Journal of Nursing Administration 37 (1): 14–20

Parkinson, John, Peter Tsasis, and Marcela Porporato. 2007. “A Critical Review of
Financial Measures as Reported in the Ontario Hospital Balanced Scorecard.” Journal of
Health Care Finance 34 (2): 48–56.

Wicks, Angela M. and Lynda St. Clair. 2007. “Competing Values in Healthcare:
Balancing the (Un)Balanced Scorecard.” Journal of Healthcare Management 52 (5):
309–324.

Yang, M. C. and Y. C. Tung. 2006. “Using Path Analysis to Examine Causal
Relationships Among Balanced Scorecard Performance Indicators for General Hospitals:




                                                                                          3
The Case of a Public Hospital System in Taiwan.” Health Care Management Review 31
(4): 280–8.




                                                                                    4

								
To top