Fillable Printable Balanced Scorecard Example
Fillable Printable Balanced Scorecard Example
Balanced Scorecard Example
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BALANCEDSCORECARD EXAMPLE
The following is an example of how one mightdevelop a Balanced Scorecard.Theinformation
included is fictional and is providedto simply demonstrate the process.
Anytown Hospital has just finished a two-day retreat where they revised and updated their
mission and vision statements and drafted a strategic plan. The hospital’s vision statement is:
The hospital’s mission statement is:
During theirretreat,the hospital board andleadership identified the following strategies to
pursue the upcoming year.
•Operate in the blackwith 5% margin by increasing revenues
•Motivate, recognize and retainstaff
•Provide highquality services
•Increaseutilization of services
The Anytown Hospital administratorenlisted thehelp of thedepartment managers toimplement
a performance improvement processand BalancedScorecard. First, they tookthesestrategies
and placed them intotheir appropriate perspectives asfollows:
Financial Perspectives (Business
& Development)
•Operate in the blackwith 5%
margin by increasing revenues
Customer Perspective (Patients
& Community)
•Increaseutilization of services
Internal Process Perspective
(Quality& Safety)
•Provide highquality services
Learning and Growth
Perspective (Staff& Clinicians)
•Motivate, recognize and retain
staff
Anytown Hospital is committed to providing the highest quality of health care through
service excellence and compassionate care
The vision of Anytown Hospitalis to be the community’s providerof choice.
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NOTE: Once strategiesare categorized accordingto the four perspectives, if there are
imbalances, determine if they aresignificant and either add orremovestrategiesaccordingly.
The next step is todeterminethe causal linkages between the strategies and develop a strategy
map to visually portray howyour strategiessupport your mission and vision. One of the primary
reasonsfor developing a strategymap is that itshould clearly communicate theconnection
between strategies and mission and is an excellent communication tool. The following is
Anytown Hospital’s strategy map.
Learning and Growth Perspective (Staff & Clinicians)
Motivate, recognize and retainstaff
Internal Process Perspective (Quality&Safety)
Provide highquality services
Customer Perspective (Patients & Community)
Increaseutilization of services
Financial Perspectives (Business& Development)
Operate in the blackwith 5% margin by increasing revenues
RESULTS IN
RESULTS IN
RESULTS IN
MISSION: Anytown Hospital iscommitted toproviding the highest qualityof health care
through service excellence and compassionate care
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Once you have yourstrategy map, you can startidentifying what actions youwill take to achieve
strategiesand how you willmeasure the progress in accomplishing each strategy. The following
are a few examples of actions you might implement under each strategy andtwo measuresthat
could be used to track accomplishment of each strategy. For purposes ofthis example, botha lag
(historical performance) and alead (predictor of future performance) indicator are used.
Learning and Growth Perspective (Staff & Clinicians):
Motivate, recognize and retain staff
ACTIONS:
Develop performance based compensation
Develop peer recognition program
Review/update salary/benefits to ensure competitiveness
MEASURES:
Employee satisfaction (lag indicator)
Turnover rate (lead indicator)
Internal Process Perspective (Quality&Safety):
Provide high quality services
ACTIONS:
Review ER patient flowprocessand streamline
Review ER staffing toensure adequacy
Implement automated pharmaceutical dispensing
MEASURES:
% ERpatient triaged within 15minutesofarrival(lead indicator)
Medication errors per dose (lag indicator)
Customer Perspective (Patients & Community):
Increase utilization of services
ACTIONS:
Implement customer service
Implement marketing plan
MEASURES:
Patient satisfaction in 95%-tile (lag indicator)
Average daily census (lead indicator)
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Financial Perspectives (Business& Development):
Operate in the black with 5%marginby increasing revenues
ACTIONS:
Review billing and collections processes for accuracy and timeliness
Develop incentive programfor AR staff
MEASURES:
Net revenueincreaseover prior year(lagindicator)
Decrease net days in accounts receivable (lead indicator)
Once the measures are identified,you’llneed todetermine whether thedata is currently
available or willneed to becollected.For example, you mayalready have dataon
employee terminations that couldbe used tocalculate turnoverrate on amonthly basisby
department.You may haveto purchase ordesign employee or patient satisfaction
surveysto solicit their input. Employee surveys can be completed quarterly or annually
and patient satisfaction surveyscould be ongoing.
Afterdata sourceshave been
identified, the team
(administrator/department
managers) should assign
responsibility for the collection of
this data. Individuals within the
businessoffice would probably
collect the net revenue andAR
data; someone who manages
human resourcesor salary/payroll
functions might beresponsible for
collecting data on turnover rates or
employee satisfaction; the
individual responsible for quality
assurance or improvement might
be responsible for collectingdata
on ER triage time or medication
errors; etc.(seeexample toright)
Assignmentsshould be made to an
individual to collectdata, and the teamshould establish timelines for collection, deadlines
forreporting, targets (what you hopeto achieve)and reportformats.Using the example
above, at the end of each month, the HR manager gets the employee data from whoever
processes payroll and enters it intothe spreadsheet. He/she then generates a chart
showing the trends. Refer toFigure 1. The deadline for completion ofthis task is
established at the 5
th
of each month, the target is established at “0%” or no turnover, and
EXAMPLE
The human resource manager could set upa simple
excel spreadsheet that containstotal employeesby
department by month and terminations(bothvoluntary
and involuntary) within each department. A ratio of # of
terminations divided bytotal employeesperdepartment
could be calculated easily and tracked each month. That
data could be aggregated for the entire facility as well.
If,for example,you have a large number ofvoluntary
terminations (people arequitting),youcould determine
in which departmentthese tend to occurand implement
exit interviewsto determine cause. If the terminations
are involuntary (people arefired), you might want to
review the reasonsfor terminationand/orthe hiring
practicesto make sure the best candidatesare being
hired.
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the HR manager is responsible for submittingthe data to the teamin the agreed upon
format.
Figure 1
Each responsible individual is giventhe task of collecting the data, analyzing the data,
and reportingthe data back tothe team. Theteam can then discuss options, modify
actions oractivities intended toachieve strategies, or just keep tabs on progress.
A Balanced Scorecard could be puttogetherby simply including each report generated
by the team members or designated individuals. On the following page is asimplified
report of four measures – employee turnover, percentage of patients seen in ER within15
minutes, patient satisfaction, andaverage days in accountsreceivables. Foreach chart,
the target is included. This example of aBalanced Scorecard is oversimplified but it
doesn’t need to be anymore complicated than a few charts with relevant data. This
information can be collected, stored, analyzed,andreports generated in Microsoft Office
products or other similarsoftware products.
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