Balance Scorecard Essay Example
WHAT IS A BALANCED SCORECARD?
A balanced scorecard is a performance-measuring method that focuses on tracking key metrics grouped according to a set of broad performance areas (e.g., internal processes, financial performance, and customer satisfaction) that constitute a balanced view of the organization. Typically, during the strategy-development process, senior management defines the organization's goals and measures progress based on these areas. They then identify four or five key performance indicators within each area. The purpose of the balanced scorecard is not only to monitor performance within each area, but also to improve performance by setting specific goals for each measure and time frames for achieving them.
PERFORMANCE METRICS
A balanced scorecard is only as good as the metrics used to measure performance.
Certain general performance metrics are significant for organizations in all industries. These universal metrics include revenue analysis, financial projections, staffing trends, and training evaluation. Others include supply costs and projections.
The balanced scorecard for healthcare organizations also needs to address issues such as surgical utilization, materials management contract compliance, integration of clinical and financial operations, and patient satisfaction. Healthcare-specific key performance indicators that should be tracked include:
* Average length of stay
* Maintained bed occupancy
* FTEs per adjusted occupied bed
* Case-mix index
* Monthly surgical cases (outpatient and inpatient)
* Inpatient and outpatient revenues
* Cost per adjusted patient day (outpatient and inpatient)
* Percentage of revenue from charitable sources
* Revenue and expense per physician
* Margin per department
* Admitting-process performance
Organizations benefit from standardizing performance indicators across all departments and locations.
Standardization facilitates the equal comparison and analysis of business processes that are common
A balanced scorecard is a performance-measuring method that focuses on tracking key metrics grouped according to a set of broad performance areas (e.g., internal processes, financial performance, and customer satisfaction) that constitute a balanced view of the organization. Typically, during the strategy-development process, senior management defines the organization's goals and measures progress based on these areas. They then identify four or five key performance indicators within each area. The purpose of the balanced scorecard is not only to monitor performance within each area, but also to improve performance by setting specific goals for each measure and time frames for achieving them.
PERFORMANCE METRICS
A balanced scorecard is only as good as the metrics used to measure performance.
Certain general performance metrics are significant for organizations in all industries. These universal metrics include revenue analysis, financial projections, staffing trends, and training evaluation. Others include supply costs and projections.
The balanced scorecard for healthcare organizations also needs to address issues such as surgical utilization, materials management contract compliance, integration of clinical and financial operations, and patient satisfaction. Healthcare-specific key performance indicators that should be tracked include:
* Average length of stay
* Maintained bed occupancy
* FTEs per adjusted occupied bed
* Case-mix index
* Monthly surgical cases (outpatient and inpatient)
* Inpatient and outpatient revenues
* Cost per adjusted patient day (outpatient and inpatient)
* Percentage of revenue from charitable sources
* Revenue and expense per physician
* Margin per department
* Admitting-process performance
Organizations benefit from standardizing performance indicators across all departments and locations.
Standardization facilitates the equal comparison and analysis of business processes that are common