Balanced Scorecard Used In Health Care Essay

There are four perspectives when it comes to balanced scorecard. First one is learning and growth which means how the information and knowledge are processed and turned into competitive advantage against other companies. Second is about product manufacturing and making sure that all the products are made the same without any defaults. Third one is about customer satisfaction and making sure that customers are happy with product, service and price. Fourth one is about financial performance and making sure that company’s financial data is used properly.

Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.

The balanced scorecard now plays an important role in organization management. It has been further identified and used as an important tool in today 's business processes. According to Eric W. Noreen et al. (2002), "a balanced scorecard consists of an integrated set of performance measures that are derived from and support a company’s strategy. A strategy is essentially a theory about how to achieve the organization’s goals" (p. 551). Previously, management had been overwhelmed with data for a long

Regardless of the many advantages that an organization can make use of by adopting the balanced scorecard while planning its organizational strategies, it is seen that its adoption in the health care industry and even by the Crandon Hospital has been slow. The reason for this has been the few problems which are been faced by the non-profit health care organizations while adopting the BSC, they can be listed as:-

The Balanced Scorecard Institute reports that in the 1950’s General Electric was the first to use the Balanced Scorecard approach, but it was not until the 1990’s when Dr. Robert Kaplan a Harvard Business School professor and Dr. David Norton officially titled it the Balanced Scorecard. Once used as only a measurement tool for organizations, it is now a complete strategic planning and management system (Balanced Scorecard Institute, n.d.). Originally, businesses looked at the financial reports to distinguish whether it was a quality company or not. Kaplan and Norton however believed the financial reports only showed past history and an organization must also track how it is performing currently and look at ways to constantly improve future performance. Kaplan and Norton established there are four business segments or perspectives to measure and make improvements on. The four segments

The balanced scorecard (BSC) is fundamentally a customized performance measurement system that looks beyond traditional financial measures and is based on organization strategy. This paper discusses fundamental concepts in developing performance metrics, provides an overview of issues in developing balanced scorecard measures, and gives numerous illustrations of performance measures. As shown later, the BSC is an active area of research within the medical community. However, previous research does not report on the fundamental linkages between hospital inputs, outputs, and the creation of performance metrics. In addition, these articles provide few specific examples of balanced scorecard measures and illustrations of how the balanced scorecard translates action into improved performance.

Balanced scorecard is a set of measures, which give the complete view of any business performance. Kaplan and Norton (1995) explained balanced scorecard in following words:

A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate

Balanced Scorecard can add a new type of reporting without unquestionably enhancing quality or financial numbers, it can seem to be an increased set of non-value-added reporting or, worse, a distraction from obtaining actual goals.

The Balanced Scorecard (BSC) is a powerful diagnostic tool which provides managers with a vision and strategy of the organization to completely value the performance of the organization(Roussas & Mccaskill 2015). BSC integrates financial measures with several crucial factors to create a long or short term plan(Huang 2009). This system emphasizes ‘leading and lagging indicators, internal performance perspectives, and quantitative and qualitative objectives’(Roussas & Mccaskill 2015). BSC works by four perspectives:

Some organizations have a difficult time establishing a process that can translate its strategic vision into concrete goals and actions. There are clearly some beneficial advantages to applying the balanced scorecard approach. Some of these benefits include gaining a cross organizational team that will open channels of communications. The company will have enthusiastic people who are focused on carrying out the organization’s mission and commitment to quality. Also, the company will gain a unique competitive advantage relating to reduce time frames, improved decisions and better solutions. Most importantly, initiatives are continually measured and evaluated against industry standards.

The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure performance and compare it to the organization’s strategic objectives and goals (Kinney and Raiborn 2013, 10).

The Balanced Scorecard (BSC) was created by Kaplan and Norton (1992) as a strategic management system to assist

The leading organizations use performance measurement with the aim of gaining insights to their organizations and the efficiency of their people, programs and processes. The organizations do not only collect and analyze data but they also use performance management to transform various strategies into actions and to improve their operational processes (Northcott and Ma 'amora Taulapapa 2012). Accordingly, performance management is used to manage the organizations. The Balanced Scorecard (BSC) is a prominent performance management system in the contemporary world and it was developed by Dr. David Norton and Dr. Robert Kaplan at Harvard business school. Compared to other systems of measuring performance, the BSC considers various

The balanced scorecard can act as different roles in a company. When acting as a measurement of performance, BSC follows two steps. Firstly, it draws objectives and measures from the company’s overall strategy. In other worlds, it converts the vague strategy into detailed actions. Then, by using these objectives and measures as a benchmark, the performance are evaluated from four different aspects including the financial, customer, internal-business-process and learning and growth perspective (Kaplan and Norton, 1996). The financial perspective concentrates on financial health of a company, it is the most direct way for executives to measure organization performance. Usually, the good performance of the other three perspectives of the scorecard will lead to good results of financial performance as the four perspectives are interrelated. In terms of