Healthcare Process Improvement: Overview of The Balanced Scorecard

ISE 468 ETM 568 Spring 2013

Dr. Joan BurtnerAssociate Professor, Department of Industrial Engineering and Industrial Management

Spring 2013 ISE 468 ETM 568 Dr. Burtner Slide 2

Balanced Scorecard

Developed by Robert Kaplan and David Norton in the early 1990s

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 2013 ISE 468 ETM 568 Dr. Burtner Slide 3

Balanced Scorecard Benefits

Concept: An organization’s strategies and their execution are important factors in performance improvement

Potential benefits 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 2013 ISE 468 ETM 568 Dr. Burtner Slide 4

Links Strategy and Performance in 4 Areas

Learning and Growth Perspective

Internal Process Perspective

Customer Perspective

Financial Perspective

Spring 2013 ISE 468 ETM 568 Dr. Burtner Slide 5

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 2013 ISE 468 ETM 568 Dr. Burtner Slide 6

Typical Measures in Healthcare

Source: http://www.activestrategy.com/strategy_execution/example_balanced_scorecards.aspx Accessed Oct. 18, 2009