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The Balanced Scorecard Presented To Adnan Alshiha Presented By Alaoula Board Member.

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Presentation on theme: "The Balanced Scorecard Presented To Adnan Alshiha Presented By Alaoula Board Member."— Presentation transcript:

1 The Balanced Scorecard Presented To Adnan Alshiha Presented By Alaoula Board Member

2 Workshop Outline Introduction to the Balanced Scorecard What is it? Why do it? 1-3 Brayer Break Balanced Scorecard Fundamentals Balanced Scorecard Fundamentals The Four Perspectives The Four Perspectives Measures, Targets and Initiatives Measures, Targets and Initiatives Roles and Responsibilities Roles and Responsibilities Business Strategy

3 The Balanced Scorecard What is it? Definition: The Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals. The Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.

4 Balanced Scorecard History Measurement and Reporting Alignment and Communication Enterprise-wide Strategic Management Articles in Harvard Business Review: The Balanced Scorecard Measures that Drive Performance January - February 1992 Putting the Balanced Scorecard to Work September - October 1993 Using the Balanced Scorecard as a Strategic Management System January - February Acceptance and Acclaim: The Balanced Scorecard is translated into 18 languages Selected by Harvard Business Review as one of the most important management practices of the past 75 years.

5 The Balanced Scorecard is the main management tool that has been used by successful organizations in various fieldsThe Balanced Scorecard is the main management tool that has been used by successful organizations in various fields Private and Public SectorPrivate and Public Sector For- Profit and Not For- ProfitFor- Profit and Not For- Profit Different industriesDifferent industries These successful organizations placed their strategies at the centre of their operations. Their strategies, guided Their day- to- day activitiesThese successful organizations placed their strategies at the centre of their operations. Their strategies, guided Their day- to- day activities In this workshop, we will learn more about strategy- focused organizations, and how to develop Balanced ScorecardsIn this workshop, we will learn more about strategy- focused organizations, and how to develop Balanced Scorecards The Strategy-Focused-Organization

6 Organizations Often Have A Gap Between Strategy and Action Strategy Is a Step In a Continuum MISSION Why we exist VALUES Whats important to us VISION What we want to be STRATEGY Our game plan STRATEGIC OUTCOMES Satisfied SHAREHOLDERS Delighted CUSTOMERS Efficient and Effective PROCESSES Motivated & Prepared WORKFORCE

7 The Balanced Scorecard Is A Bridge To Close That Gap Strategy Is a Step In a Continuum MISSION Why we exist VALUES Whats important to us VISION What we want to be STRATEGY Our game plan BALANCED SCORECARD Implementation & Focus STRATEGIC INITIATIVES What we need to do STRATEGIC OUTCOMES Satisfied SHAREHOLDERS Delighted CUSTOMERS Efficient and Effective PROCESSES Motivated & Prepared WORKFORCE PERSONAL OBJECTIVES What I need to do

8 The Balanced Scorecard What is it? The Balanced Scorecard: Balances financial and non-financial measuresBalances financial and non-financial measures Balances short and long-term measuresBalances short and long-term measures Balances performance drivers (leading indicators) with outcome measures (lagging indicators)Balances performance drivers (leading indicators) with outcome measures (lagging indicators) Should contain just enough data to give a complete picture of organizational performance… and no more!Should contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus and organizational alignment.Leads to strategic focus and organizational alignment.

9 qMeasurement is the language that gives clarity to vague concepts qMeasurement is used to communicate, not simply to control Financial Perspective Profitability Growth Shareholder Value The Vision Customer Perspective Price Service Quality Internal Perspective Learning and Growth New Skills Continuous Improvement Intellectual Assets If we succeed, how will we look to our shareholders? To achieve our vision, what customer needs must we serve? To satisfy our customers and shareholders, at which business processes must we excel? To excel in our processes, what must our organization learn? Cycle Time Productivity Cost The Balanced Scorecard Provides a Four Perspective Framework to Translate Strategy Into Operational Terms

10 The Revenue Growth Strategy Improve stability by broadening the sources of revenue from current customers The Productivity Strategy Improve operating efficiency by shifting customers to more cost-effective channels of distribution Improve Returns Improve Operating Efficiency Broaden Revenue Mix Increase Customer Confidence in Our Financial Advice Increase Customer Satisfaction Through Superior Execution Increase Employee Productivity Access to Strategic Information Develop Strategic Skills Align Personal Goals Financial Perspective Customer Perspective Internal Perspective Learning Perspective Cross-Sell the Product Line Shift to Appropriate Channel Provide Rapid Response Develop New Products Minimize Problems Understand Customer Segments A Good Balanced Scorecard Strategy Map Tells the Story of Your Strategy

11 A Good Balanced Scorecard Tells the Story of Your Strategy Through A Set of Linked Cause and Effect Hypotheses F1 - Improve Returns F2 - Broaden Revenue Mix F3 - Reduce Cost Structure C1 - Increase Customer Satisfaction With Our Products & People C2 - Increase Satisfaction After the Sale I1 -Understand Our Customers I2 -Create Innovative Products I3 -Cross-Sell Products I4 -Shift Customers to Cost- Effective Channels I5 -Minimize Operational Problems I6 -Responsive Service L1 - Develop Strategic Skills L2 - Provide Strategic Info L3 - Align Personal Goals Return on Investment Revenue Growth Deposit Service Cost Change Share of Segment Customer Retention New Product Revenue Cross-Sell Ratio Channel Mix Change Service Error Rate Request Fulfillment Time Employee Satisfaction Revenue per Employee Strategic Objectives Strategic Measurements (Lag Indicators)(Lead Indicators) Revenue Mix Depth of Relation Satisfaction Survey Product Development Cycle Hours with Customers Strategic Job Coverage Ratio Strategic Info Availability Ratio Personal Goals Alignment (%) Financial Customer Internal Learning

12 Objectives Fast ground turnaround Statement of what strategy must achieve and whats critical to its success Target 30 Minutes 90% The level of performance or rate of improvement needed Cycle time optimization Key action programs required to achieve objectives Initiative Measurement On Ground Time On-Time Departure How success in achieving the strategy will be measured and tracked Strategic Theme: Operating Efficiency Profitability Financial Learning Increase Revenue Ground crew alignment Lowest prices Lower Costs Customer Internal Fast ground turnaround Strategy Map: Diagram of the cause-and-effect relationships between strategic objectives Flight is on time Theme Example from Southwest Airlines Balanced Scorecard

13 The Balanced Scorecard Supports a Complete Strategic Management System by Linking Long Term Strategy and Measures to More Tactical Planning & Budgeting ObjectivesMilestones Promote ABC Culture Model Employee Satisfaction Survey Evaluate survey response Internal Learning Customer Accountable HR Committee $ xxxx Resource Alloc. Targets Initiatives Measures Themes/ Goals Vision Mission Meet access expectations 3 rd available appointment (% met) 02 xx% 03 xx% 04 xx% Access project Meet monthly target Deadline met Mkg. Team $ xxxx ABC Hospital System will provide excellent care in our selected specialty areas while maintaining margin and growing share Serve the needs of patients excellently 1. Strengthen innovation 2. Improve customer satisfaction 3. Assure consistent high quality 4. Provide operational excellence Longer Term (3-5 year) ViewShorter Term (Annual) View Strategic Tactical % patient mix 02 = 39% 03 = 40% 04 = 41% Mix Margins Project Dept. ChairsComplete by 2003 $ xxxxAssure optimum patient mix 02 xx% 03 xx% 04 xx% Financial Grow revenue from patient care % patient care revenue growth 02 xx% 03 xx% 04 xx%

14 The Balanced Scorecard Why do it? To achieve strategic objectives. To provide quality with fewer resources. To eliminate non-value added efforts. To align customer priorities and expectations with the customer. To track progress. To evaluate process changes. To continually improve. To increase accountability.

15 The Balanced Scorecard Why do it? It works! In just 90 days, Sandia Labs was able to redirect $190,000 in savings by dropping initiatives that didnt fit their overall strategy. In just 90 days, Sandia Labs was able to redirect $190,000 in savings by dropping initiatives that didnt fit their overall strategy. The BSC has forced our management team to focus beyond financial measures… too often in the past we would get sucked into short-term thinking. The BSC has forced our management team to focus beyond financial measures… too often in the past we would get sucked into short-term thinking. The BSC dramatically improved our data analysis… we dont overreact nearly as much as we used to. The BSC dramatically improved our data analysis… we dont overreact nearly as much as we used to.

16 Execution of Strategy Has Become the Corporate Challenge of Our Times! Strategy has never been more importantStrategy has never been more important Business Week Business Week Less than 10% of strategies effectively formulated are effectively executedLess than 10% of strategies effectively formulated are effectively executed Fortune Magazine Fortune Magazine The problem is that our ages fascination with strategy and vision feeds the mistaken belief that developing the right strategy will enable a company to rocket past competitors. In reality, strategy is less than half the battle... In the majority of cases – we estimate 70% – the real problem isnt [bad strategy]…. Its bad execution.The problem is that our ages fascination with strategy and vision feeds the mistaken belief that developing the right strategy will enable a company to rocket past competitors. In reality, strategy is less than half the battle... In the majority of cases – we estimate 70% – the real problem isnt [bad strategy]…. Its bad execution. Why CEOs Fail Ram Charan and Geoffrey Colvin Fortune (6/21/99) Why CEOs Fail Ram Charan and Geoffrey Colvin Fortune (6/21/99)

17 The Results are Widespread 1993 –$275 loss 1998 –Top Quartile –$3b spin-off Brown & Root Engineering (Rockwater) Saint Marys/ Duluth Clinic Health System Duke Childrens Hospital Southern Citrus CIGNA Property & CasualtyChemical Bank ATT Canada 1993 –Losing money 1996 –# 1 in Niche (growth & profits) Profits 1993 – X 1998 –20X 1995 –$300M loss 1998 –Customer base doubles 1999 –$7b spin-off Shipments on Spec On Time Delivery Rework Absenteeism Employee Turnover Cost per Pound (¢) 70% 89% 6% 10% % 98% 2% 1% Mobil US Marketing & Refining Competitive Rank (out of 7,profit) #6 #1 63 Readmission Rate 25 Length of Stay 11 Family Satisfaction 25 Operating Margin % Improvement Measure 15% Overall Hospital Point Satisfaction Decrease 16 days Days in AR $18M since BSC implementation Operating Margin ImprovementMeasure

18 Mission: What we do Vision: What we aspire to be Strategies: How we accomplish our goals Measures: Indicators of our progress The Strategy Focused Organization

19 ..the question..? What is our strategy?

20 Environmental Scan Strengths Weaknesses Opportunities Threats Values Mission & Vision Strategic Issues Strategic Priorities Objectives, Initiatives, and Evaluation A Model for StrategicPlanning

21 Business Strategy

22

23 Corporate Culture

24 The beliefs and values shared by people who work in an organisationThe beliefs and values shared by people who work in an organisation How people behave with each other How people behave with each other How people behave with customers/clients How people behave with customers/clients How people view their relationship with stakeholders How people view their relationship with stakeholders Peoples responses to energy use, community involvement, absence, work ethic, etc. Peoples responses to energy use, community involvement, absence, work ethic, etc. How the organisation behaves to its employees – training, professional development, etc. How the organisation behaves to its employees – training, professional development, etc.

25 Corporate Culture May be driven by:May be driven by: Vision – where the organisation wants to go in the futureVision – where the organisation wants to go in the future Mission Statement – summary of the beliefs of the organisation and where it is nowMission Statement – summary of the beliefs of the organisation and where it is now

26 Corporate Culture May be reflected in:May be reflected in: –Attitude and behaviour of the leadership –Attitude to the role of individuals in the workplace – open plan offices, team based working, etc. –Logo of the organisation –The image it presents to the outside world –Its attitude to change

27 Corporate Culture What corporate culture do you think the following businesses have managed to develop? Virgin Group Copyright: Joshua2150, The Body Shop Copyright: fadaquiqa, McDonalds Copyright: alexallied Nike Copyright: alexbol

28 Strategic Planning

29 First Stage of Strategic Planning may involve:First Stage of Strategic Planning may involve: Futures ThinkingFutures Thinking –Thinking about what the business might need to do 10–20 years ahead Strategic IntentsStrategic Intents –Thinking about key strategic themes that will inform decision making The thicker the planning document, the more useless it will beThe thicker the planning document, the more useless it will be –(Brent Davies: 1999) Taking time to think and reflect may be more important than many businesses allow time for! Copyright: Intuitives,

30 Strategic Planning The VisionThe Vision –Communicating to all staff where the organisation is going and where it intends to be in the future –Allows the firm to set goals Aims and Objectives:Aims and Objectives: –Aims – long term target –Objectives – the way in which you are going to achieve the aim

31 Strategic Planning Once the direction is identified:Once the direction is identified: Analyse position Analyse position Develop and introduce strategy Develop and introduce strategy Evaluate: Evaluate: –Evaluation is constant and the results of the evaluation feed back into the vision

32 Analysis

33 SWOT Strengths – identifying existing organisational strengths Strengths – identifying existing organisational strengths Weaknesses – identifying existing organisational weaknesses Weaknesses – identifying existing organisational weaknesses Opportunities – what market opportunities might there be for the organisation to exploit? Opportunities – what market opportunities might there be for the organisation to exploit? Threats – where might the threats to the future success come from? Threats – where might the threats to the future success come from?

34 PEST Political: local, national and international political developments – how will they affect the organisation and in what way/s? Political: local, national and international political developments – how will they affect the organisation and in what way/s? Economic: what are the main economic issues – both nationally and internationally – that might affect the organisation? Economic: what are the main economic issues – both nationally and internationally – that might affect the organisation? Social: what are the developing social trends that may impact on how the organisation operates and what will they mean for future planning? Social: what are the developing social trends that may impact on how the organisation operates and what will they mean for future planning? Technological: changing technology can impact on competitive advantage very quickly! Technological: changing technology can impact on competitive advantage very quickly!

35 PEST Examples:Examples: Growth of China and India as manufacturing centres Growth of China and India as manufacturing centres Concern over treatment of workers and the environment in less developed countries who may be suppliers Concern over treatment of workers and the environment in less developed countries who may be suppliers The future direction of the interest rate, consumer spending, etc. The future direction of the interest rate, consumer spending, etc. The changing age structure of the population The changing age structure of the population The popularity of fads like the Atkins Diet The popularity of fads like the Atkins Diet The move towards greater political regulation of business The move towards greater political regulation of business The effect of more bureaucracy in the labour market The effect of more bureaucracy in the labour market

36 Five-Forces Developed by Michael Porter: forces that shape and influence the industry or market the organisation operates in.Developed by Michael Porter: forces that shape and influence the industry or market the organisation operates in. Strength of Barriers to Entry - how easy is it for new rivals to enter the industry? Strength of Barriers to Entry - how easy is it for new rivals to enter the industry? Extent of rivalry between firms – how competitive is the existing market? Extent of rivalry between firms – how competitive is the existing market? Supplier power – the greater the power, the less control the organisation has on the supply of its inputs. Supplier power – the greater the power, the less control the organisation has on the supply of its inputs. Buyer power – how much power do customers in the industry have? Buyer power – how much power do customers in the industry have? Threat from substitutes – what alternative products and services are there and what is the extent of the threat they pose? Threat from substitutes – what alternative products and services are there and what is the extent of the threat they pose?

37 Required Inputs Changing strategy will impact on the resources needed to carry out the strategy:Changing strategy will impact on the resources needed to carry out the strategy: Specifically the impact on:Specifically the impact on: Land – opportunities for acquiring land for development – green belt, brownfield sites, planning regulations, etc. Land – opportunities for acquiring land for development – green belt, brownfield sites, planning regulations, etc. Labour – ease of obtaining the skilled and unskilled labour required Labour – ease of obtaining the skilled and unskilled labour required Capital – the type of capital and the cost of the capital needed to fulfil the strategy Capital – the type of capital and the cost of the capital needed to fulfil the strategy

38 Evaluation

39 Evaluation Data from sales, profit, etc. used to evaluate the progress and success of the strategy and to inform of changes to the strategy in the light of that dataData from sales, profit, etc. used to evaluate the progress and success of the strategy and to inform of changes to the strategy in the light of that data Information from a wide variety of sources can help to measure and inform the impact and direction of the strategy. Copyright: Mad7986,

40 Types of Strategy

41 Competitive Advantage – something which gives the organisation some advantage over its rivalsCompetitive Advantage – something which gives the organisation some advantage over its rivals Cost advantage – A strategy to seek out and secure a cost advantage of some kind - lower average costs, lower labour costs, etc.Cost advantage – A strategy to seek out and secure a cost advantage of some kind - lower average costs, lower labour costs, etc.

42 Types of Strategy Market Dominance:Market Dominance: Achieved through:Achieved through: –Internal growth –Acquisitions – mergers and takeovers New product development: to keep ahead of rivals and set the paceNew product development: to keep ahead of rivals and set the pace Contraction/Expansion – focus on what you are good at (core competencies) or seek to expand into a range of markets?Contraction/Expansion – focus on what you are good at (core competencies) or seek to expand into a range of markets?

43 Types of Strategy Price Leadership – through dominating the industry – others follow your price leadPrice Leadership – through dominating the industry – others follow your price lead Global – seeking to expand global operationsGlobal – seeking to expand global operations Reengineering – thinking outside the box – looking at news ways of doing things to leverage the organisations performanceReengineering – thinking outside the box – looking at news ways of doing things to leverage the organisations performance

44 Types of Strategy –Internal business level strategies – Downsizing – selling off unwanted parts of the business – similar to contraction Downsizing – selling off unwanted parts of the business – similar to contraction Delayering – flattening the management structure, removing bureaucracy, speed up decision making Delayering – flattening the management structure, removing bureaucracy, speed up decision making Restructuring – complete re-think of the way the business is organised Restructuring – complete re-think of the way the business is organised

45 The Five Principles 1.Translate the strategy to operational terms. 2.Align the organization to the strategy. The Strategy Focused Organization Source: The Strategy Focused Organization, Norton & Kaplan

46 The Five Principles (cont.) 3.Make strategy everyones job. 4.Make strategy a continual process. 5.Mobilize change through executive leadership The Strategy Focused Organization Source: The Strategy Focused Organization, Norton & Kaplan

47 The Balanced Scorecard and The Big Picture Activity Based Costing Economic Value Added Forecasting Benchmarking Market Research Best Practices Six Sigma Statistical Process Control Reengineering ISO 9000 Total Quality Management Empowerment Learning Organization Self-Directed Work Teams Change Management

48 Strategic Direction Create Environment For Change Strategic Performance Management System Linking it all together…. Communicate Strategies Define Objectives Implement BSC Balanced Scorecard Measure Performance Improve Processes Evaluate and Adjust Continuous Improvement Redefine Initiatives

49 FINANCIAL/REGULATORY To satisfy our constituents, what financial & regulatory objectives must we accomplish? CUSTOMER To achieve our vision, what customer needs must we serve? INTERNAL To satisfy our customers and stakeholders, in which business processes must we excel? LEARNING & GROWTH To achieve our goals, how must we learn, communicate and grow? THE BALANCED SCORECARD

50 Customer Perspective o Customer Satisfaction (Average) o Satisfaction Gap Analysis (Satisfaction vs. Level of Importance) o Satisfaction Distribution (% of each area scored) Possible Performance Measures To achieve our vision, what customer needs must we serve?

51 Financial / Regulatory Perspective o Cost / Unit o Unfunded Requirements or Projects o Cost of Service o Budget Projections and Targets Possible Performance Measures To satisfy our constituents, what financial and regulatory objectives must we accomplish?

52 Internal Perspective o Cycle Time o Completion Rate o Workload and Employee Utilization o Transactions per employee o Errors or Rework Possible Performance Measures To satisfy our customers, in which business processes must we excel?

53 Learning and Growth To achieve our goals and accomplish core activities, how must we learn, communicate and work together? Possible Performance Measures o Employee Satisfaction o Retention and Turnover o Training Hours and Resources o Technology Investment

54 Why Measure? To determine how effectively and efficiently the process or service satisfies the customer.To determine how effectively and efficiently the process or service satisfies the customer. To identify improvement opportunities.To identify improvement opportunities. To make decisions based on FACT and DATATo make decisions based on FACT and DATA

55 Measurements Should: Translate customer expectations into goals.Translate customer expectations into goals. Evaluate the quality of processes. Evaluate the quality of processes. Track our improvement. Track our improvement. Focus our efforts on our customers. Focus our efforts on our customers. Support our strategies. Support our strategies.

56 Targets If you dont know where youre going, youre probably not gonna get there. Forrest Gump

57 Targets Targets need to be set for all measuresTargets need to be set for all measures Should have a solid basis Should have a solid basis Give personnel something for which to aim Give personnel something for which to aim If achieved will transform the organization If achieved will transform the organization

58 Targets Careful not to develop measures/targets inCareful not to develop measures/targets in a fragmented approach: a fragmented approach: i.e. Asking people to increase customer satisfaction has to be backed up with the knowledge, tools, and means to achieve that target.

59 Initiatives Once measures and targets are established, it is the responsibility of management to determine HOW the organization will achieve its goals. Measures are used to determine the effectiveness of strategic initiatives.

60 The Leadership Team Develops the divisions vision, strategy and goalsDevelops the divisions vision, strategy and goals Develops organizational objectives and targetsDevelops organizational objectives and targets Provides leadership, endorsement and vision for the projectProvides leadership, endorsement and vision for the project Clears barriers to scorecard progressClears barriers to scorecard progress

61 The Core Team Drafts the strategy map and scorecardDrafts the strategy map and scorecard Works with employees to develop measures supporting strategic objectivesWorks with employees to develop measures supporting strategic objectives Works with the Leadership Team to plan and implement the Balanced Scorecard in the FAS DivisionWorks with the Leadership Team to plan and implement the Balanced Scorecard in the FAS Division

62 Adjusted Discharges 23,89023,592 Patient Satis- faction Choose key focus areas for improve- ment C Arranging Care Determine outpatient phone model, conduct pilots C Cultural Develop- ment Complete communi- cations strategy C Quality Improve- ment Implement system-wide governance structure C Encounters 912,188892,243 Employer Satis- faction Complete survey develop- ment in CY 1999 CY Determine outpatient model for registration & scheduling C Complete physician survey C Complete external quality report in CY 1999 CY Cost per Adjusted Discharge 6,9647,535 HEDIS Indicators Select indicators for develop- ment plan M Providing Care Determine model for patient delivery system for clinical divisions C Complete employee survey C Meet or exceed standards for SMDC accreditation C Cost per Encounter Com- munity Service Complete reporting process and inventory C Complete system strategy for ambulatory surgery C Complete plan to maintain Catholic- ity C Informa- tion Technol- ogy Complete IT strategic plan in CY 1999 CY Operating Margin Commun- ity Aware- ness Complete surveyin CY 1999 CY Docu- menting and Tracking Care Complete plan for decentralized coding and charge entry C Employee Relations Strategy Accom- plish pay equity C Complete Y2K compliance by 12/99 CY Excess Margin Market Share Complete baseline C Innova- tion and Program Develop- ment Complete feasibility study for a womens health center C Synchro- nize employee benefits C Medical Education & Research Complete report of funded grants and publications C Days Cash on Hand Complete plan for a geriatrics program C Facilities Planning Complete Perkins & Will plan M Days in Accounts Receivable Return on Investment C = task completed; CY = Calendar Year 1999 task; M = task modified Finance section:Target met;Target not met

63 Strategy Map Finance and Administrative Services

64

65

66 FINANCIAL CUSTOMER INTERNAL PROCESS LEARNING & GROWTH Hum. Rscrs.Univ. PoliceFacilities PoliceParking Link it together…. Measure: Satisfaction Index Current: 3.0 Target: 4.0 DIVISION DEPT. FUNCTION

67 The Strategy Map: Cause and Effect Relationships What will drive margins?What will drive margins? –Managed growth in high margin programs/service lines How?How? –Attract targeted patient population through targeted referring physicians who value leading edge technology & expertise What will the internal focus be?What will the internal focus be? –Ensure clinical excellence through leading edge programs and techniques in focused specialty areas –Align research priorities to support leading programs and stay out front in treatment methods Will our people be prepared to do that?Will our people be prepared to do that? –Yes, with appropriate technology –Yes, by recruiting critical expertise Maximize High Margin Opportunities Strong Financial Base Financial Customer Specialty Care Patients Referring Providers Leading Edge Technology Leading Edge Expertise Internal Continually Develop Clinical Excellence Develop Leading Edge Programs/ Techniques Learning & Growth Develop Critical Staffing Resource Plans Align Research Priorities Implement Technology to Support Processes and Programs Implement Managed Growth

68 The Balanced Scorecard as a Management System BSC reviewed regularly to enhance operational decision-making Success of initiatives assessed based on DATA… not opinionsSuccess of initiatives assessed based on DATA… not opinions Leading indicators evaluated to confirm accuracy of assumptionsLeading indicators evaluated to confirm accuracy of assumptions

69 The Balanced Scorecard as a Management System The BSC is a Living Document that requires regular revision of objectives, measures and initiatives: How are we doing?How are we doing? Are we measuring the right things?Are we measuring the right things? What initiatives do we need to get us where we want to go?What initiatives do we need to get us where we want to go? Have our organizational goals changed?Have our organizational goals changed?

70 Rapid Deployment Case Study: Major Federal Organization Need Approach Benefits Definition of Corporate strategy Rapid roll-out and broad reach Develop internal capabilities to sustain momentum Develop Corporate Balanced Scorecard Define template for rolling out BSC Train subordinate units Streamline project management Quality checks Online education Clear guidance from Corporate Active involvement from client teams Rapid deployment with minimal resources Quality control

71 Advantages to this Approach Simple to Use and Understand Based on Vision and Strategy Based on Vision and Strategy Multidimensional Multidimensional Quantitative and Qualitative MeasuresQuantitative and Qualitative Measures Current and FutureCurrent and Future Provides Measurement of and Method for Improving our Services Provides Measurement of and Method for Improving our Services Ties QI initiatives together Ties QI initiatives together Serves as a Communication Tool Serves as a Communication Tool

72 Thank You


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