The Balanced Scorecard as a Management Tool, Essay Example

Introduction 

When it’s about competition, the companies from all around the world has converted themselves which is based on their information, their capability to utilize intangible assets is becoming more decisive when comparing to the capabilities in managing and investing physical assets. Some years ago with respect to this change, a concept was introduced name ‘The balanced scorecard’ (Jeffs et al.,2011). This concept enlarges an organization’s financial measures on the basis of performance management with three perspectives which are, for customer, for the process of internal business and for growth and learning.

It is basically a tool which helps the organization to implement the strategies effectively. In this proposal we are going to discuss the balanced scorecard of a healthcare organization (Bisbe & Barrubés 2012). Here we will discuss the performance of healthcare industry using balanced scorecard. We will evaluate the measurement of results in the healthcare organization’s strategic management (Jeffs et al.,2011). We will describe the evaluation of goals for the near future. Once the evaluations are done then we will discuss the strategic planning and nursing’s role with respect to balanced scorecard.

Organization’s Balanced Scorecard for Quality Measurement

In healthcare organizations quality and performance management are very important issues not just for individuals but also at the national level (Bisbe & Barrubés 2012). The healthcare organization uses balanced scorecard to overcome the issues like competition, cost structure, qualitative treatments,  payor hurdles (Grigoroudis et al.,2012). This tool helps in balancing patient outcomes versus cost. As BSC has proved in keeping successful record in improving efficiency, cost savings and most of all managing the strategies plan in an easy way (Jeffs et al.,2011). By adopting BSC in healthcare organizations it will be very helpful in monitoring the performances, and association between health departments will be an unchallenging process. This tool is also useful in improving its healthcare’s administration while maintaining quality and by reducing costs (Bisbe & Barrubés 2012).

Scorecard evaluation comparing with Health care organization priorities

The face of healthcare organization is getting improved rapidly and balanced scorecard associated the systems of healthcare industries missions to implement the strategies (Jeffs et al.,2011). When BSC was not introduced the systems used to evaluate the results in an unorganized way and these organizations were facing quite difficulties in planning the strategies and then implementing them. professionals, and measurement systems were not able to effectively integrate or build bridges between the 2 visions (Grigoroudis et al.,2012).

The conventional systems when finding out the results face problems in resolving the cases. Healthcare industry’s goal is to be on top in world care, and also to be on top when it comes for patients satisfaction and moreover in healthcare initiatives they want to be number one in innovations (Bisbe & Barrubés 2012). By using this BSC concept the healthcare industries can utilize this as their benchmark to maintain an overview of organization’s health. In the healthcare organizations BSC was developed and was based on National Database of Nursing Quality Indicators (NDNQI) it recommends the organization’s goal and their prior performance (Jeffs et al.,2011). The scorecard is given to the staff as the results to get to know about their strength and weaknesses and to focus their targeted concerned.

To demonstrate that how affective organization is achieving its key objectives or business goals a tool is used know as Key Performance Indicator (KPI). Below is the diagram which shows the example of scorecard (Bisbe & Barrubés 2012).

Balanced Scorecard values and Suggestions for Improvements

If the organizations strategy, missions are clearly defined then the second step is to clarify the cause of up and down of the organizations of your BSC. Without the knowledge your scorecard will be affected, and it would be just spending more money, much time and to achieve very little output (Grigoroudis et al.,2012). The BSC is very useful to the department of Supplemental Staffing, the challenge arises when SS have to prove their results of quality indicators which lies on NDNQI recommendations.

To attain this responsibility SS examine the three areas where most of the staff works (Bisbe & Barrubés 2012). They examine their scorecard, seek the indicators which needs improvement and to work under unit leadership as to perceive whether this can help in improving the scores. The results of scorecard are categorized by division or by individual units to help in setting up the goals and to help or to guide the practices (Jeffs et al.,2011).

Measure with respect to Standardized Data Definitions

It is easy to read the scorecard which is presented in a table with each row and column. The data in the table are highlighted by different colors so that one can decide if the targets are met or are they pending (Chen 2011). Here green color shows that the targets are met, yellow shows that the targets are partially met and red indicates that the targets are below. The BCD allows the organizations to look the four important functions these are, customers perspective, internal business functions, learning and innovative perspective and financial perspective (Bisbe & Barrubés 2012).

Considering the healthcare industry we have to measure the data with respect to the people working there. We have to identify sensitive indicators for nurses and collect and combine the data for BSC (Chen 2011). Then to develop the system for data collection and give education to department or unit level. After that coordinate nurse’s performance improvement efforts who are getting practiced in separate clinical specialties (Grigoroudis et al.,2012). Then Review the data, look for the areas which require improvement and then allow best practices from different units. Continuously Provide guidance and support in quality improvement to units or department. Attain or support the magnet status from the data of NDNQI for BSC. Cooperate with NRC (nursing research council) to make a practice for evidence based model to deliver the quality care (Bisbe & Barrubés 2012).

An evaluation of goals projection and external benchmarks for the upcoming three years

Most of the strategic plans are prepared to map the course for three to five years in the near future. These strategic plans must be analyzed on regular basis or at least on quarterly basis it doesn’t mean to forget about the interim (Jeffs et al.,2011). As the healthcare organizations are unpredictable so the leader should b light-footed or flexible when it’s about changing the financial resources and community. Until and unless the conditions change, but the decisions taken should be more towards in supporting the strategies of healthcare industry (Chen 2011). The team should be strongly and professionally developed who will help in supporting the initiatives, otherwise that will affect the results in service, quality and cost pillar indirectly. The plan should be made in such a way that takes the industry into the near glowing future (Grigoroudis et al.,2012).

Reflection of Balanced Scorecard’s Strategic Plan and Nursing’s Role

Here we will discuss the nursing’s performance report in view of balanced scorecard. In change in systems and integration nurse sensitive indicators are emerged where we can get the result of financial performance and patients satisfactions (Jeffs et al.,2011). To find out understanding that how progressing and procedure are improved we use metric indicators. It provide a way in making healthcare providers accountable specially their services quality (Chen 2011).

This quality for nursing exists at numerous levels, first to make sure that patients has received a good quality, we need a proper system of monitoring performances in nursing care. Moreover we can get the evidence to arrange a ward meeting to get to know that how staffs are engaged, also to motivate the nursing staff to be part of improvement process(Grigoroudis et al.,2012). All this will help in showing how staff of nurses are highlighting and driving their priorities towards improvement.

Conclusion

BSC is a tool which helps in managing and measuring performances of the organizations. This concept is applicable in healthcare organization but the actual challenge is to implement it (Grigoroudis et al.,2012). The researchers assume that once the visions and strategies are clearly defined in healthcare organizations, than they can choose their suitable dimensions among the existing ones. That will help in measuring the performance of the healthcare organizations (Chen 2011). Nurses, therapists, physicians and others should depend on each other in order to meet the advanced standard of  integrative care. This tool has shown a mechanism in reflecting good practices but also in undesirable ones. This has made the nursing staff in taking correct actions in order to maintain high care quality standard.

References

Bisbe, J., & Barrubés, J. (2012). The Balanced Scorecard as a management tool for assessing and monitoring strategy implementation in health care organizations. Revista Española de Cardiología (English Edition), 65(10), 919-927.

Chen, W. T. (2011). The indicators of performance evaluation for nursing home by balanced scorecard.

Grigoroudis, E., Orfanoudaki, E., & Zopounidis, C. (2012). Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard. Omega, 40(1), 104-119.

Jeffs, L., Merkley, J., Richardson, S., Eli, J., & McAllister, M. (2011). Using a nursing balanced scorecard approach to measure and optimize nursing performance. Nursing Leadership (Toronto, Ont.), 24(1), 47-58.