Bus 499 mod 3 ca: Balanced Scorecard Research Paper. bus499mod3ca
Module 3 - Case The Internal Business Process Perspective The internal business process perspective of the balanced scorecard turns attention to the aspects of the organization`s operations that are within the possibility of direct control by its managers and employees. Here is a useful brief summary of the approach: Niven, P. (N.D.) Internal Process perspective. EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/InternalProcess-Perspective.html Analysis of business processes is closely bound up with the assessment of quality; in fact, most of the literature in this area is dominated by the vocabulary of the quality analysts. The Chartered Quality Institute offers a good overview of product and service quality concerns, and how they affect customer loyalty and satisfaction (note the intersection of the Business Process and Customer Perspectives!). Here is a useful summary of this approach that meshes nicely with the internal business process perspective; although it does not explicitly mention the balanced scorecard, you should have no trouble applying its recommendations to your case analysis here: CQI (2008) Introduction to Quality. The Chartered Quality Institute. Retrieved May 17, 2010, from http://www.thecqi.org/resources/d2-1.shtml Our example in this case is Duke Childrens` Hospital in Raleigh-Durham NC. Here`s how this process has been described: The authors describe their experience in developing a strategy-focused organization using the balanced scorecard methodology. They achieved this at Duke Children`s Hospital by aligning the clinicians and administrators around a single integrated platform that linked improving business processes with achieving quality clinical outcomes. By organizing in this manner, they reduced cost by $30 million and increased net margin by $15 million while improving outcomes and staff satisfaction. This article describes a methodology to achieve strategic control of the organization, increase the knowledge of key stakeholders, and transform the organization to optimize the organization`s performance. The article from which this summary is taken can be found here: Meliones, Jon N.; Ballard, Richard; Liekweg, Richard; & Burton, William (2001, April). No mission () no margin: It`s that simple. Journal of Health Care. 27(3): 21-30. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=69282123&scaling=FULL&vtype=PQD&rqt=309&TS=1226871645&clientId=29440 As your case assignment for this module, you are to carefully review this article, and then (in 3-4 pages) prepare your analysis of how Duke Children`s Hospital implemented the balanced scorecard and its apparent effects. Assignment Expectations: Your analysis should be structured along the lines you`ve been using this far in these cases: Introduction: What process did Duke Children`s Hospital follow in creating a balanced scorecard? Why did the hospital decide to use the balanced scorecard to evaluate its stakeholder relationships and its business processes? What was the reaction of the staff? Analysis: In the balanced scorecard Duke University Children`s Hospital developed, on what internal business process did the hospital focus? What measures were used? What changes were made in that business process? Conclusion: Describe how the changes in its business processes affected both employees and customers (patients); this involves considering multiple perspectives, both those of participants and those of stakeholders. Evaluation: Did Duke Children`s Hospital do a good job in designing and using its balanced scorecard? Agree or disagree with the issue, then defend your position. Use your readings to help you decide whether the implementation was done well or poorly.
Balanced Scorecard: A balanced scorecard is a kind of management practice that compliments or replaces the drivers of past performance like the financial measures with the future performance drivers like the customer satisfaction, development of human and intellectual capital and learning. This principle was put forward by Kaplan and Norton (Bhagwat and Sharma 2007). Duke children`s Hospital decided to adopt the balanced scorecard due to the following reasons: The medical allowances were declining which caused the revenues of the Hospital to reduce drastically. The profit margin then became very narrow. The reimbursement of patients shot to very high levels accompanied by a rise in the expenses. Costs per case also rose to exorbitant levels forcing them to trim resources. Complains from the patients parents became intense due to the low quality of services. The conflict between administrators and the clinicians on whether to put the patients` plight ahead or to control costs (Mueline et al 2000). The reaction of the staff was very negative to what was happening to the Hospital. Most decided to give up their jobs as remuneration rate dropped from 80th percentile to 70th percentile. Staff satisfaction remained in an all time low. Clinicians felt powerless in the long end as their goals were not marching those of the administrators (Mahaffey and Mclean 2000). The management decided to follows the three steps below in creating a balanced scorecard: To begin with, ...