Process Improvement in Healthcare: Overview of The Balanced Scorecard

1. Process Improvement in Healthcare: Overview of The Balanced Scorecard ISE 491 Fall 2009 Dr. Joan Burtner Associate Professor, Department of Industrial Engineering and Industrial Management

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. ISE 491 Dr. Burtner ~ Balanced Scorecard

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 ISE 491 Dr. Burtner ~ Balanced Scorecard

4. Links Strategy and Performance in 4 Areas Learning and Growth Perspective Internal Process Perspective Customer Perspective Financial Perspective ISE 491 Dr. Burtner ~ Balanced Scorecard

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 ISE 491 Dr. Burtner ~ Balanced Scorecard

6. Typical Measures in Healthcare • Source: http://www.activestrategy.com/strategy_execution/example_balanced_scorecards.aspx Accessed Oct. 18, 2009 ISE 491 Dr. Burtner ~ Balanced Scorecard